Byron Books Inc. recently reported $13 million of net income. Its EBIT was $20,525,000, and its tax rate was 35%. What was its interest expense?
Byron Books Inc. recently reported $13 million of net income. Its EBIT was $20,525,000, and its tax rate was 35%. What was its interest expense?
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:Byron Books Inc. recently reported $13 million of net income. Its EBIT was $20,525,000, and its tax rate
was 35%. What was its interest expense?
Your answer should be between 140,000 and 725,000, rounded to even dollars (although decimal places are
okay), with no special characters.
Expert Solution
Given information:
EBIT is $20,525,000.
Net income is $13,000,000.
Tax rate is 35%.
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