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Ramon Construction recently reported $28.00 million of sales, $12.75 million of operating costs other than depreciation, and $3.00 million of depreciation. It had $8.50 million of bonds outstanding that carry.a 7.0% interest rate, and its federal- plus-state income tax rate was 40%. What was Rao's operating income, or EBIT, in millions? O $11.78 O $12.25

Ramon Construction recently reported $28.00 million of sales, $12.75 million of operating costs other than depreciation, and $3.00 million of depreciation. It had $8.50 million of bonds outstanding that carry.a 7.0% interest rate, and its federal- plus-state income tax rate was 40%. What was Rao's operating income, or EBIT, in millions? O $11.78 O $12.25

Essentials Of Investments
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
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Ramon Construction recently reported $28.00 million of sales, $12.75 million of operating costs other than depreciation, and $3.00 million of depreciation. It had $8.50 million of bonds outstanding that carry.a 7.0% interest rate, and its federal- plus-state income tax rate was 40%. What was Rao's operating income, or EBIT, in millions? O $11.78 $12.25 $13.52 $11.66 $12.40
Transcribed Image Text:Ramon Construction recently reported $28.00 million of sales, $12.75 million of operating costs other than depreciation, and $3.00 million of depreciation. It had $8.50 million of bonds outstanding that carry.a 7.0% interest rate, and its federal- plus-state income tax rate was 40%. What was Rao's operating income, or EBIT, in millions? O $11.78 $12.25 $13.52 $11.66 $12.40
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