3 pts Edward Construction recently reported $18.00 million of sales, $12.60 million of operating costs other than depreciation, and $3.00 million of depreciation. It had $8.50 million of bonds outstanding that carry a 7.0% interest rate, and its federal- plus-state income tax rate was 40%. What was Edward's operating income, or EBIT, in millions? $2.40 O $1.90 $2.88 O $2.11 O $2.78
3 pts Edward Construction recently reported $18.00 million of sales, $12.60 million of operating costs other than depreciation, and $3.00 million of depreciation. It had $8.50 million of bonds outstanding that carry a 7.0% interest rate, and its federal- plus-state income tax rate was 40%. What was Edward's operating income, or EBIT, in millions? $2.40 O $1.90 $2.88 O $2.11 O $2.78
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:3 pts
Edward Construction recently reported $18.00 million of sales, $12.60 million of
operating costs other than depreciation, and $3.00 million of depreciation. It had
$8.50 million of bonds outstanding that carry a 7.0% interest rate, and its federal-
plus-state income tax rate was 40%. What was Edward's operating income, or EBIT,
in millions?
$2.40
O $1.90
$2.88
O $2.11
O $2.78
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