Moose Industries has a corporate tax rate of 25%.Last yearthe c company realized $14,000,000 in operating income (EBIT). Its annual interest expense is $1,500,000. What wasthe company's net income for the year?O a. $9,375,000O b. $10,500,000Oc. $3,125,000O d. $11,625,000O e. $12,500,000

To find the net income, we need to deduct the interest expense and taxes from the operating income…

Answered: Moose Industries has a corporate tax…

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

See similar textbooks

Similar questions

1. Tommy’s Woodworking had sales of $4 million this past year. Its COGS was $2.75 million and its operating expenses were $800,000. Interest expenses on outstanding debt were $200,000 and the company paid $40,000 in stock dividends. Its tax rate is 35%. What was the company’s taxable income (EBT) and tax liability (tax expense)?
The Little Books Inc. recently reported $3 million of net income. The company’s EBIT was $6 million and the corporate tax rate was 40%. Calculate the firm’s interest expense.
Give me answer
Barton Industries has operating income for the year of $3,500,000 and a 25% tax rate. Its total invested capital is $20,000,000 and its after-tax percentage cost of capital is 7%. What is the firm's EVA? Round your answer to the nearest dollar, if necessary. $
Last year, Xxx Yyyyy had $5 million in Operating Income (EBIT). The company had a Net Depreciation Expense of $1 million and an Interest Expense of $1 million; its Corporate Tax Rate was 40%. The company has $14 million in Operating Current Assets and $4 million in Operating Current Liabilities; it has $15 million in Net Plant and Equipment. It estimates that it has an After-Tax Cost of Capital of 10%. Assume that Xxx’s only non-Cash item was Depreciation. A.) Calculate Net Operating Working Capital for the current year. B.) Calculate Total Net Operating Capital for the Current Year. C.) If Total Net Operating Capital in the Previous Year was $24 million, what was the company’s Free Cash Flow (FCF) for the year?
Sheryl’s Shipping had sales last year of $18,000. The cost of goods sold was $8,100, general and administrative expenses were $2,600, interest expenses were $2,100, and depreciation was $2,600. The firm’s tax rate is 21%. What are earnings before interest and taxes? What is net income? What is cash flow from operations?
Macon Mills is a division of Bolin Products, Inc. During the most recent year, Macon had a net income of $38 million. Included in the income was interest expense of $3,300,000. The company's tax rate was 40%. Total assets were $465 million, current liabilities were $109,000,000, and $67,000,000 of the current liabilities are noninterest bearing. What are the invested capital and ROI for Macon? Enter your answer in whole dollar. Round "ROI" answer to two decimal places.
RJS generated $65,000 net income this year. The firm's financial statements also show that its interest expense was $80,000, its marginal tax rate was 35 percent, and its invested capital was $1,200,000. If its average cost of funds is 14 percent, what was RJS's economic value added (EVA) this year? Round your answer to the nearest dollar. Use a minus sign to enter a negative value, if any.
Bell Inc.'s tax rate was 25% last year. Last year, the company realized $1,500,000 in operating income (EBIT). Its annual interest expense is $1,000,000. What was the company's net income for the year? $900,000 O $750,000 $588,300 O $1,028,250 $375,000
Tom Inc. report a $30million of net income. its EBIT is 50millions, the flat tax rate is 25%? What was its interest expense (in million)?
Ehrlich & Czarnecki Consulting, Inc. recently reported the following information: Net income = $800,000 Sales = $4,200,000 Total Assets = $9.5 million Tax rate = 40% Interest expense = 20,000 Accounts Payable = 36,000 Notes Payable = 300,000 Accruals = 50,000 After-tax cost of capital = 11% What is the company’s EVA? $-296,358 $-223,540 $-452,391 $-488,029 None of the above is within $100 of the correct answer.
Marine Outlets, Inc. had $ 14 million in sales last year, COGS of $ 8 million, depreciation expense of $ 2 million, $ 1 million in interest payments on long-term debt. If the firm's “tax rate” is 35%, how much is the Firm's Net Income?

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS

Moose Industries has a corporate tax rate of 25%. Last year the c company realized $14,000,000 in operating income (EBIT). Its annual interest expense is $1,500,000. What was the company's net income for the year? O a. $9,375,000 O b. $10,500,000 Oc. $3,125,000 O d. $11,625,000 O e. $12,500,000