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You look at Company ABC’s financial statements for 2019 and yousee operating income as $50,000....

You look at Company ABC’s financial statements for 2019 and you see operating income as $50,000. Depreciation for the year was $20,000. Interest was $5,000. Capital Expenditure was $10,000. Tax rate is 20%. What is levered cash flow?


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Expert Solution

Operating Income 50000
Interest 5000
Depreciation 20000
EBITDA 75000
EBITDA = Operating Income + Interest + Depreciation
EBITDA 75000
Capital Expenditure 10000
Leverage Cash Flow 65000
Leverage Cash Flow = EBITDA - Capital Expenditure


jeff jeffy answered 3 years ago
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