Extra_Practice_Review_Questions_Ch4[1]

If scorch burn has a marginal tax rate of 40 what was

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Unformatted text preview: ating income (EBIT) of $260,00 last year. The firm had $18,000 in depreciation expenses, $15,000 in interest expenses and $60,000 in selling, general, and administrative expenses. If Scorch & Burn has a marginal tax rate of 40%, what was its after ­tax cash flow for last year? a. $165,000 b. $129,000 c. $174,000 d. $147,000 4. Ship ­to ­Shore has revenues of $280,000. It has $55,000 in general and administrative expenses, $40,000 in interest e...
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This note was uploaded on 07/31/2013 for the course FIN 504 taught by Professor Harper,j during the Summer '08 term at Texas A&M University–Commerce.

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