GoPro's earnings before interest and taxes (EBIT) was / $190$190 million. Assuming GoPro's tax rate is 35/%35%, what is their net operating profit after taxes (NOPAT) for 2014 expressed in million of dollars? * Make sure to input all currency answers without any currency symbols or commas, and use two decimal places of precision.

Question

Kayley Gross

Business

10 June, 14:34

GoPro's earnings before interest and taxes (EBIT) was / $190$190 million. Assuming GoPro's tax rate is 35/%35%, what is their net operating profit after taxes (NOPAT) for 2014 expressed in million of dollars? * Make sure to input all currency answers without any currency symbols or commas, and use two decimal places of precision.

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Polly · Answer 1

Answer: 123.5

Explanation: Earnings before interest and tax, that is, EBIT is sometimes used synonymously with operating income is the profits of company before deducting income tax expense and interest expense. These are used to evaluate the performance of company before tax and capital structure affecting it. NOPAT that is net operating profit after tax is calculated by deducting interest and tax from EBT.

THAT IS,

NOPAT = EBT (1 - tax rate)

since there is no interest-

EBIT = EBT

Therefore,

NOPAT = 190 (1 - 35%)

= 123.5