Calculate net operating profit after taxes (NOPAT) if a firm has sales of $1,000,000, operating profit (EBIT) of $100,000, interest expense of $50,000, and a tax rate of 30%.
A. $35,000.
B. $700,000.
C. $70,000.
D. none of the above.
Answer:C
Calculate net operating profit after taxes (NOPAT) if a firm has sales of $1,000,000, operating profit (EBIT) of $100,000, interest expense of $50,000, and a tax rate of 30%.
A. $35,000. B. $700,000. C. $70,000. D. none of the above.