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Ghella [55]
1 year ago
6

free cash flow catering corp. reported free cash flows for 2013 of $8 million and investment in operating capital of $2 million.

catering listed $1 million in depreciation expense and $2 million in taxes on its 2008 income statement. what was catering's 2013 ebit?
Business
1 answer:
arsen [322]1 year ago
4 0

Cash flow accessible Catering Corp. reported $8 million in free cash flows for 2013 and a $2 million investment in operating capital.

What exactly is free cash flow?

In corporate finance, free cash flow or free cash flow to the firm is the amount by which a company's operating cash flow exceeds its demands for working capital and fixed asset expenditures. The cash generated by a company after deducting cash outflows for operating expenses and capital asset upkeep is referred to as free cash flow (FCF).

To learn more about free cash flow

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Dave klein is a produce farmer in northern california. his major customers are grocery stores in the midwest. dave's product is
ss7ja [257]
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2 years ago
After completing your turn, and before changing lanes, you should:
rewona [7]
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3 years ago
An investor recently purchased a corporate bond that yields 9%. The investor is in the 36% combined federal and state tax bracke
kifflom [539]

Answer:

The bonds after tax yield is given as Pre tax yield X (1-tax rate)

After Tax Yield = 9% X (1-0.36) = 9%X0.64=5.76%

Answer: 5.76%

Explanation:

The after-tax yield of any financial instrument such as a bond or even stock dividends is the effective yield after the applicable taxes have been paid. Higher the tax rate, lesser is the after-tax yield for the investor.

To calculate your after-tax yield, you need to know both the rate of return on your investment and the tax rate that applies to those profits. First, convert your tax rate that applies to the earnings to a decimal by dividing by 100. Second, subtract the result from 1 to calculate the portion of your earnings that you get to keep after you pay taxes on them. Third, multiply the result by the rate of return on the investment to calculate your after-tax yield.

For example, say that you want to calculate the after-tax rate of return on your certificate of deposit. If your rate of return is 3 percent and the tax rate applied to that interest is 24 percent, start by dividing 24 percent by 100 to get 0.24. Second, subtract 0.24 from 1 to get 0.76 – the portion that you get to keep after accounting for taxes. Finally, multiply 0.76 by your overall rate of return of 3 percent to find your after-tax yield is 2.28 percent.

5 0
3 years ago
Read 2 more answers
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