Assume a Firm Has No Interest Expense or Extraordinary Items

question 45

Multiple Choice

Assume a firm has no interest expense or extraordinary items.Given this,the operating cash flow can be computed as:

• A)EBIT − Taxes.
• B)EBIT(1 − Tax rate)+ Depreciation(Tax rate).
• C)(Sales − Costs)(1 − Tax rate).
• D)EBIT − Depreciation + Taxes.
• E)Net income + Depreciation.