. Net operating profit after taxes (NOPAT) is defined as which of the following? A. Net...
. Net operating profit after taxes (NOPAT) is defined as which of the following? A. Net profit a firm earns before taxes, but after any financing costs B. Net profit a firm earns after taxes, and after any financing cots C. Net profit a firm earns after taxes, but before any financing costs D. Net profit a firm earns before taxes, and before any financing cost __________________ is defined as after-tax operating profit minus the amount of new investment in working capital, fixed assets, and the development of new products. 12. Which of the following can be considered a source of cash by the organization: A. Depreciation B. Payment of dividends C. Decrease in a current liability D. Increase in a non cash current asset.
Homework Answers
Answer 1:
Correct answer is:
C. Net profit a firm earns after taxes, but before any financing costs
Explanation:
Net operating profit after taxes (NOPAT) is company's income (theoretical) income from operations if it had no interest expenses (no debt).
NOPAT = EBIT * (1 - Tax rate)
Calculation of NOPAT helps operating performance of companies with different debt/equity ratios / financial leverages comparable.
Hence option C is correct.
Option A is incorrect since 'net profit a firm earns before taxes, but after any financing costs' is EBT.
Option B is incorrect since 'net profit a firm earns after taxes, and after any financing cost' is net income or EAT.
Option D is incorrect since 'net profit a firm earns before taxes, and before any financing cost' is EBIT
Answer 2:
Free cash flow (FCF) is defined as after-tax operating profit minus the amount of new investment in working capital, fixed assets, and the development of new products.
Answer 3:
Correct answer is:
A. Depreciation
Explanation:
Depreciation can be considered a source of cash by the organization since it is non-cash expense and is tax deductible.
Hence option A is correct.
Other options B, C and D are incorrect since payment of dividends, decrease in a current liability and increase in a non-cash current asset involves usage of cash.
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please read questions because this is third time no body can answer i attached one of...
please read questions because this is third time no body can
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please read questions because this is third time no body can
answer i attached one of wrong answers
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please read questions because its third time no one can help
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