Foundations of Financial Management
Foundations of Financial Management
16th Edition
ISBN: 9781259277160
Author: Stanley B. Block, Geoffrey A. Hirt, Bartley Danielsen
Publisher: McGraw-Hill Education
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Chapter 12, Problem 2P

a.

Summary Introduction

To calculate:The cash flow of a corporation.

Introduction:

Cash flow:

The amount of cash and its equivalents transferred in and out of a business is termed as cash flow.

b.

Summary Introduction

To calculate:The cash flow of a corporation when depreciation is $20,000.

Introduction:

Cash flow:

The amount of cash and its equivalents transferred in and out of a business is termed as cash flow.

c.

Summary Introduction

To calculate:The loss of cash flow from the reduction of depreciation from $40,000 to $20,000.

Introduction:

Cash flow:

The amount of cash and its equivalents transferred in and out of a business is termed as cash flow.

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Assume a corporation has earnings before depreciation and taxes of $82,000, depreciation of $45,000, and that it has a 25% combined tax bracket. What are the after-tax cash flows for the company?
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Foundations of Financial Management

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