# 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

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

Expert's answer

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.

So, NOPAT = (2000 - 1200 - 100)*(1 - 0.35) = $455.00.

So, the right answer is e.

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