Nukin' Gnats Pest Control is trying to determine its cash flow per share.It has revenue of $50,000, $35,000 of expenses, $4,000 of depreciation and $3,000 of interest expense.The firm is in the 40% tax bracket.The firm has 75,000 shares of common stock outstanding.Its cash flow per share is:
A)$.08
B)$.07
C)$.92
D)$.46

Question

Quizplus · Accepted Answer

$50,000 ­ $35,000 ­ $4,000 ­ $3,000 = $8,000 × .60 = $4,800 EAT
$4,800 + $4,000 = $5,200/75,000 = $.0693

Nukin' Gnats Pest Control Is Trying to Determine Its Cash