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What is the company's net income?

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The Moore Corporation has operating income (EBIT) of $750.000. The company's depreciation expense is $200.000. Moore is 100% equity financed, and it faces a 40% tax rate. What is the company's net income? What is its net cash flow?

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The solution determines what the company's net income is.

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The EBIT in our case, ie, Earnings before interest and taxes is 750,000. In order to arrive at net ...

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Sandeep Bardia, MBA
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  • MBA, Rochester Institute of Technology
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