Byron Books Inc. recently reported $18 million of net income. Its EBIT was $37.2 million, and its tax rate was 25%. What was its interest expense? (Hint: Write out the headings for an income statement, and then fill in the known values. Then divide $18 million of net income by (1 T) = 0.75 to find the pretax income. The difference between EBIT and taxable income must be interest expense. Use this same procedure to complete similar problems.) Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the nearest dollar, if necessary. Do not round intermediate calculations. $
Byron Books Inc. recently reported $18 million of net income. Its EBIT was $37.2 million, and its tax rate was 25%. What was its interest expense? (Hint: Write out the headings for an income statement, and then fill in the known values. Then divide $18 million of net income by (1 T) = 0.75 to find the pretax income. The difference between EBIT and taxable income must be interest expense. Use this same procedure to complete similar problems.) Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the nearest dollar, if necessary. Do not round intermediate calculations. $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Byron Books Inc. recently reported $18 million of net income. Its EBIT was $37.2 million, and its tax rate was 25%. What was its interest expense? (Hint: Write out the headings
for an income statement, and then fill in the known values. Then divide $18 million of net income by (1 T) = 0.75 to find the pretax income. The difference between EBIT and
taxable income must be interest expense. Use this same procedure to complete similar problems.) Write out your answer completely. For example, 25 million should be entered as
25,000,000. Round your answer to the nearest dollar, if necessary. Do not round intermediate calculations.
$
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