An analyst has collected the following information regarding gilligan grocers:

earnings before interest and taxes (ebit) = $700 million.
earnings before interest, taxes, depreciation and amortization (ebitda) = $850 million.
interest expense = $200 million.
the corporate tax rate is 40 percent.
depreciation is the company’s only non-cash expense or revenue.
what is the company’s net cash flow?

a. $850 million

b. $650 million

c. $570 million

d. $450 million

e. $500 million

What is an example of a good stock to buy during economic expansion? a) cyclical stock b) defensive stock c) income stock d) bond

Match the steps for conducting an informational interview with the tasks in each step.

Pennewell publishing inc. (pp) is a zero growth company. it currently has zero debt and its earnings before interest and taxes (ebit) are $80,000. pp's current cost of equity is 10%, and its tax rate is 40%. the firm has 10,000 shares of common stock outstanding selling at a price per share of $48.00. refer to the data for pennewell publishing inc. (pp). pp is considering changing its capital structure to one with 30% debt and 70% equity, based on market values. the debt would have an interest rate of 8%. the new funds would be used to repurchase stock. it is estimated that the increase in risk resulting from the added leverage would cause the required rate of return on equity to rise to 12%. if this plan were carried out, what would be pp's new value of operations? a. $484,359 b. $521,173 c. $584,653 d. $560,748 e. $487,805