When Computing the Adjusted Cash Flow from Assets, the Tax

question 28

Multiple Choice

When computing the adjusted cash flow from assets, the tax amount is calculated as:

• A) EBT(TC).
• B) (EBT − Depreciation)(TC).
• C) (EBIT + Depreciation − Change in NWC − Capital spending)(TC).
• D) EBIT(TC).
• E) (EBIT − Depreciation − Change in NWC − Capital spending)(TC).

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Definitions:

Divisionalized Structures

Divisionalized structures refer to organizational models in which operations are segmented into semi-autonomous divisions, each focusing on a particular product line, market sector, or geographical area.

Geographically-Based Structure

An organizational structure that assigns responsibilities based on geographical divisions or territories.

Matrix Structures

An organizational structure that creates project-based teams from different departments for more dynamic and flexible operations.

Divisional Structure

An organizational structure that groups departments based on similar products, services, customers, or geographic locations.