Nicholas Health Systems recently reported an EBITDA of $25.0 million and net income of $15.8 million....

Nicholas Health Systems recently reported an EBITDA of $25.0 million and net income of $15.8 million. It had $2.0 million of interest expense, and its federal tax rate was 21% (ignore any possible state corporate taxes). What was its charge for depreciation and amortization?

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Expert Solution

Tax @ 21%:-

if we assume Earnings before tax (EBT) is 100%, and Tax is 21%. so Earnings after tax will be 79%.( EBT (100%) - Tax (21%)

As pre Given data Net income $ 1,58,00,000 is equal to 79%

Charge for Depreciation and amortization =

30,00,000

jeff jeffy answered 2 years ago

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