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2 years ago

An analyst has collected the following information regarding Gilligan Grocers:

Business

1 answer:

bearhunter [10]2 years ago

4 0

Answer:

The correct answer is D.

Explanation:

Giving the following information:

Earnings before interest and taxes (EBIT) = $700 million.

Earnings before interest, taxes, depreciation and amortization (EBITDA) = $850 million.

Interest expense = $200 million.

The corporate tax rate is 40 percent.

First, we need to determine the depreciation expense.

Depreciation= EBITDA - EBIT= 850 - 700= 150million

Net cash flow= EBIT - Interest - Tax + Depreciation

EBIT= 700

Insterest= 200 million (-)

EBT= 500

Tax= 500*0.40= 200 (-)

Depreciation= 150 (+)

Net cash flow= 450 million

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Answer:

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2 years ago

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Answer:

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Explanation:

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2 years ago

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Answer:

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