Mariota Industries has sales of $304,940 and costs of $153,070. The company paid $24,070 in interest and $12,550 in dividends. It also increased retained earnings by $63,542 during the year. If the company's depreciation was $15,335, what was its average tax rate? a. 30.92% b. 32.34% c. 47.80% d. 24.13% e. 11.93%

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 4P: Talbot Enterprises recently reported an EBITDA of $8 million and net income of $2.4 million. It had...
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Mariota Industries has sales of $304,940 and costs
of $153,070. The company paid $24,070 in interest
and $12,550 in dividends. It also increased retained
earnings by $63,542 during the year. If the
company's depreciation was $15,335, what was its
average tax rate?
a. 30.92%
b. 32.34%
c. 47.80%
d. 24.13%
e. 11.93%
Transcribed Image Text:Mariota Industries has sales of $304,940 and costs of $153,070. The company paid $24,070 in interest and $12,550 in dividends. It also increased retained earnings by $63,542 during the year. If the company's depreciation was $15,335, what was its average tax rate? a. 30.92% b. 32.34% c. 47.80% d. 24.13% e. 11.93%
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