Laiho Industries recently reported the following information in its annual report:  Net income = $7.0 million.  NOPAT = $60 million.  EBITDA = $120 million.  Net profit margin = 5.0%. Laiho has depreciation expense, but it does not have amortization expense. Laiho has $300 million in operating capital, its after-tax cost of capital is 10 percent (that is, it’s WACC = 10%), and the firm’s tax rate is 40 percent. a. What is Laiho’s depreciation expense? b. What is Laiho’s interest expense? c. What is Laiho’s sales? d. What is Laiho’s EVA?

Laiho Industries recently reported the following information in its annual report:  Net income = $7.0 million.  NOPAT = $60 million.  EBITDA = $120 million.  Net profit margin = 5.0%. Laiho has depreciation expense, but it does not have amortization expense. Laiho has $300 million in operating capital, its after-tax cost of capital is 10 percent (that is, it’s WACC = 10%), and the firm’s tax rate is 40 percent. a. What is Laiho’s depreciation expense? b. What is Laiho’s interest expense? c. What is Laiho’s sales? d. What is Laiho’s EVA?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 4P: Talbot Enterprises recently reported an EBITDA of $8 million and net income of $2.4 million. It had...

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