4. LSP Inc. reported the following financial facts at the year-end Dec 2018. Total Interest-Bearing Debt= $37,000; Sales= $15,000; Total Operating Cost= $4,000. If tax rate is 40% and interest rate is 6%, Find interest expense for the corresponding company. $2220 $7000 $2700 $346 None of the above 5. LSP Inc. recently reported $150,000 of sales, $75,500 of operating costs other than depreciation, and $10,200 of depreciation. The company had $16,500 of outstanding bonds that carry a 7.25% interest rate, and its federal-plus-state income tax rate was 35%. How much was the firm's net income? The firm uses the same depreciation expense for tax and stockholder reporting purposes. $35,167.33 $37,018.24 $38,966.57 O $41,017.44

4. LSP Inc. reported the following financial facts at the year-end Dec 2018. Total Interest-Bearing Debt= $37,000; Sales= $15,000; Total Operating Cost= $4,000. If tax rate is 40% and interest rate is 6%, Find interest expense for the corresponding company. $2220 $7000 $2700 $346 None of the above 5. LSP Inc. recently reported $150,000 of sales, $75,500 of operating costs other than depreciation, and $10,200 of depreciation. The company had $16,500 of outstanding bonds that carry a 7.25% interest rate, and its federal-plus-state income tax rate was 35%. How much was the firm's net income? The firm uses the same depreciation expense for tax and stockholder reporting purposes. $35,167.33 $37,018.24 $38,966.57 O $41,017.44

Fundamentals Of Financial Management, Concise Edition (mindtap Course List)

10th Edition

ISBN:9781337902571

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter3: Financial Statements, Cash Flow, And Taxes

Section: Chapter Questions

Problem 19SP

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