Answer to Question #49028 in Finance for Scott

Question #49028
Bae Inc. has the following income statement. How much net operating profit after taxes (NOPAT) does the firm have? Sales $2,000.00 Costs 1,200.00 Depreciation 100.00 EBIT $ 700.00 Interest expense 200.00 EBT $ 500.00 Taxes (35%) 175.00 Net income $ 325.00 Ans. a) $370.60 b) $390.11 c)$410.64 d)$432.25 e)$455.00
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Expert's answer
2014-11-18T14:29:55-0500
Net operating profit after tax (NOPAT) is a company's after-tax operating profit for all investors, including shareholders and debt holders. It is equivalent to earnings before interest after taxes (EBIAT).
So, NOPAT = (2000 - 1200 - 100)*(1 - 0.35) = $455.00.
So, the right answer is e.

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