Hailey, inc., has sales of $19,630, costs of $9,400, depreciation expense of $2,070, and interest expense of $1,560. assume the tax rate is 30 percent. what is the operating cash flow, or ocf

Sales = 19,630

Costs = 9,400

Gross Profit = 10,230

Depreciation = 2,070

Interest expense = 1,560

Earnings before tax = 6,600

Taxes at 30% = 1,980

Net Income =  4,620

Add back Depreciation = 2,070 (as it is an non cash expense)

Operating cash flow (OCF) = $ 6,690

$157.14

Explanation:

Calculation for how much will you pay for the company's stock today

Using this formula

P0 =D1 / (Ke - g)

Where,

P0 =Price of Share

D1 =Current Dividend=$3.30

Ke =Cost of Equity=5.40%

g =growth rate=3.30%

Let plug in the formula

P0 =$3.30/ (5.40%-3.30%)

P0 =$3.30/0.021

P0= $157.14

Therefore the amount that you will pay for the company's stock today will be $157.14