Laiho Industries recently reported the following information in its annual report: Net income = $7.0 million. NOPAT = $60 million. EBITDA = $120 million. Net profit margin = 5.0%. Laiho has depreciation expense, but it does not have amortization expense. Laiho has $300 million in operating capital, its after-tax cost of capital is 10 percent (that is, it’s WACC = 10%), and the firm’s tax rate is 40 percent. a. What is Laiho’s depreciation expense? b. What is Laiho’s interest expense? c. What is Laiho’s sales? d. What is Laiho’s EVA?
Laiho Industries recently reported the following information in its annual report: Net income = $7.0 million. NOPAT = $60 million. EBITDA = $120 million. Net profit margin = 5.0%. Laiho has depreciation expense, but it does not have amortization expense. Laiho has $300 million in operating capital, its after-tax cost of capital is 10 percent (that is, it’s WACC = 10%), and the firm’s tax rate is 40 percent. a. What is Laiho’s depreciation expense? b. What is Laiho’s interest expense? c. What is Laiho’s sales? d. What is Laiho’s EVA?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Laiho Industries recently reported the following information in its annual report:
Net income = $7.0 million.
EBITDA = $120 million.
Net profit margin = 5.0%.
Laiho has
a. What is Laiho’s depreciation expense?
b. What is Laiho’s interest expense?
c. What is Laiho’s sales?
d. What is Laiho’s EVA?
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