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question Completion Status: Moving to another question will save this response. Question 4 of 10 Question 4 1 points Save Answer The Firm has an after-tax cost of capital of 12%, and its tax rate is 50%. Last year the firm had SS00,000 of earnings before interest and taxes on its $12,000,000 of sales, while depreciation expense was $400,000. The firm had capital employed of $5,000,000. Find the firm's operating cash flow. a.780,000 b. $ 800,000 O c. $ 805,000 d. $825,000 Question 4 of 10 Moving to another question will save this response.

Explanation / Answer

B.$800,000.

the following table shows it:

EBIT $800,000 less: tax @50% (400,000) Add: depreciation 400,000 operating cash flow 800,000

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