Patterson Brothers recently reported an EBITDA of $8.8 million and a net income of $2.4 million. It had $2 million in interest expense, and its corporate tax rate was 45%. What was its charge for depreciation and amortization?

Patterson Brothers recently reported an EBITDA of $8.8 million and a net income of $2.4 million. It had $2 million in interest expense, and its corporate tax rate was 45%. 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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Right Answer

Patterson Brothers recently reported an EBITDA of $8.8
million and a net income of $2.4 million. It had $2
million in interest expense, and its corporate tax rate
was 45%.
What was its charge for depreciation and amortization?

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