Tater and Pepper Corp. reported free cash flows for 2021 of $52.1 million and investment in operating capital of $35.1 million. Tater and Pepper incurred $14.9 million in depreciation expense and paid $25.5 million in taxes on EBIT in 2021.   Calculate Tater and Pepper’s 2021 EBIT. (Enter your answer in millions of dollars rounded to 1 decimal place.)

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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Tater and Pepper Corp. reported free cash flows for 2021 of $52.1 million and investment in operating capital of $35.1 million. Tater and Pepper incurred $14.9 million in depreciation expense and paid $25.5 million in taxes on EBIT in 2021.

 

Calculate Tater and Pepper’s 2021 EBIT. (Enter your answer in millions of dollars rounded to 1 decimal place.)

 

 
Expert Solution
Information;

Free cash flow = $52.1 million

Investment in operating capital = $35.1 million

Depreciation expenses = $14.9 million

Taxes paid = $25.5 million

 

Earning before interest and taxes (EBIT) = ?

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