Suppose a firm has the following information: Sales = $10million; costs of goods sold (excluding depreciation) = $5 million;depreciation = $1.4 million; other operating expenses = $2 million;interest expense = $1 million. If the tax rate is 25%, what is NOPAT,the net operating profit after taxes? ($1.2 million)

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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Suppose a firm has the following information: Sales = $10
million; costs of goods sold (excluding depreciation) = $5 million;
depreciation = $1.4 million; other operating expenses = $2 million;
interest expense = $1 million. If the tax rate is 25%, what is NOPAT,
the net operating profit after taxes? ($1.2 million)

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