ABC Corp, has a EBIT of $599,843. Their depreciation expense is $80,097, their net working capital...

ABC Corp, has a EBIT of $599,843. Their depreciation expense is $80,097, their net working capital increased by $17,154, and they spent $172,704 on capital assets. What is their unlevered cash flow if their tax rate is 0.32?

Expert Solution

Unlevered Cash Flows

EBIT	$ 599,843.00
Less: Tax @ 32%	$ 191,950.00
EAT	$ 407,893.00
Add: Depreciation	$ 80,097.00
Less: Increase in Working Capital	$ 17,154.00
Less: Capital Expenditure	$ 172,704.00
Unlevered Cash Flows	$ 298,132.00

jeff jeffy answered 2 years ago

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