eBook ncome statement solly's Art Galleries recently reported $15.8 million of net income. Its EBIT was $26 million, and its federal tax rate was 21% (ignore any possible state corporate taxes). What was its interest expense? (Hint: Write out the headings for an income catement and then fill in the known values. Then divide $15.8 million net income by 1-T-0.79 to find the pre-tax income. The difference between EBIT and taxable income must be the interest expense.) Enter your answer in dollars. For exam an answer of $1.2 million should be entered as 1,200,000. Round your answer to the nearest dollar.
eBook ncome statement solly's Art Galleries recently reported $15.8 million of net income. Its EBIT was $26 million, and its federal tax rate was 21% (ignore any possible state corporate taxes). What was its interest expense? (Hint: Write out the headings for an income catement and then fill in the known values. Then divide $15.8 million net income by 1-T-0.79 to find the pre-tax income. The difference between EBIT and taxable income must be the interest expense.) Enter your answer in dollars. For exam an answer of $1.2 million should be entered as 1,200,000. Round your answer to the nearest dollar.
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter6: Accounting For Financial Management
Section: Chapter Questions
Problem 3P
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