Cox Corporation recently reported EBITDA of $22.5 million and $5.4 million of net income. The company...

Cox Corporation recently reported EBITDA of $22.5 million and $5.4 million of net income. The company has $6 million interest expense and the corporate tax rate is 25 percent. What was the company's depreciation and amortization expense? Show work.

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Expert Solution

EBITDA	22.5 million
Less:depreciation and amortization(balance)(22.5-13.2)million	$9.3 million.
EBIT(6+7.2) million	13.2 million
Less:interest	6 million
EBT(100%)(5.4 million/0.75)	7.2 million
Less:tax@25%(7.2 million*25%)	1.8 million
Net income(75%)	5.4 million

jeff jeffy answered 1 year ago

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