Question
Assume a corporation has earnings before amortization and taxes (EBAT) of $100,000 and amortization of $10,000,...
Assume a corporation has earnings before amortization and taxes (EBAT) of $100,000 and amortization of $10,000, and it has a 34 percent tax rate.
a. Compute its cash flow.
Cash flow $
b. Compute the difference in cash flow, If there was $50,000 in amortization.
Difference in cash flow $
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