Patterson Brothers recently reported an EBITDA of $7.5 million and a net income of $1.2 million. It had $2 million in interest expense, and its corporate tax rate was 40%. What was its charge for depreciation and amortization?

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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Patterson Brothers recently reported an
EBITDA of $7.5 million and a net income of
$1.2 million. It had $2 million in interest
expense, and its corporate tax rate was 40%.
What was its charge for depreciation and
amortization?
Transcribed Image Text:Patterson Brothers recently reported an EBITDA of $7.5 million and a net income of $1.2 million. It had $2 million in interest expense, and its corporate tax rate was 40%. What was its charge for depreciation and amortization?
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