An analyst has collected the following information regarding National Co.: Earnings before interest and taxes (EBIT) = P730 million. Earnings before interest, taxes, depreciation and amortization (EBITDA) = P850 million. Interest expense = P100 million. The corporate tax rate is 25 percent. Depreciation is the company’s only non-cash expense or revenue. What is the company’s net cash flow?

An analyst has collected the following information regarding National Co.: Earnings before interest and taxes (EBIT) = P730 million. Earnings before interest, taxes, depreciation and amortization (EBITDA) = P850 million. Interest expense = P100 million. The corporate tax rate is 25 percent. Depreciation is the company’s only non-cash expense or revenue. What is the company’s net cash flow?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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