INCOME STATEMENT Byron Books Inc recently reported $13 million of net income. Its EBIT was $20.8 million, and its tax rate was 35%. What was its interest expense? (Hint: Write out the headings for an income statement, and fill in the known values. Then divide $13 million of net income by (1 – T) = 0.65 to find the pretax income. The difference between EBIT and taxable income must be interest expense. Use this same procedure to complete similar problems.)
Fundamentals of Financial Manageme...
Fundamentals of Financial Manageme...
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INCOME STATEMENT Byron Books Inc recently reported $13 million of net income. Its EBIT was $20.8 million, and its tax rate was 35%. What was its interest expense?
(Hint: Write out the headings for an income statement, and fill in the known values. Then divide $13 million of net income by (1 – T) = 0.65 to find the pretax income. The difference between EBIT and taxable income must be interest expense. Use this same procedure to complete similar problems.)
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