LUGAW Inc. has an earnings before interest and taxes of P4,750,000. The company’s total depreciation and amortization expense is P870,000.  The company is not paying any interest arising from any financing cost.  The net investment in operating capital of the company is P1,570,000. The company has a 30% tax rate. What is LUGAW’s net operating profit after taxes?

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
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Problem 10P: The Moore Corporation has operating income (EBIT) of 750,000. The companys depreciation expense is...
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LUGAW Inc. has an earnings before interest and taxes of P4,750,000. The company’s total depreciation and amortization expense is P870,000.  The company is not paying any interest arising from any financing cost.  The net investment in operating capital of the company is P1,570,000. The company has a 30% tax rate. What is LUGAW’s net operating profit after taxes?

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