Ask Experts Questions for FREE Help !
Ask
    glenda0724's Avatar
    glenda0724 Posts: 1, Reputation: 1
    New Member
     
    #1

    Sep 5, 2013, 10:52 AM
    Corporate Finance
    Income Statement: Like Books Inc. recently reported $3 millionof net income. Its EBIT was $6 million, and its tax rate was 40%. What was its interest expense? Then divide $3 million of net income by (1-T)=0.6 to find the pretax income. The difference between eBIT and taxable income must be the interest expense.
    smoothy's Avatar
    smoothy Posts: 25,495, Reputation: 2853
    Uber Member
     
    #2

    Sep 5, 2013, 12:30 PM
    SInce this is homeowrk... and we don't do homework per the site rules... whats your answer to it?

Not your question? Ask your question View similar questions

 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Finance Homework corporate finance [ 0 Answers ]

The Everly Equipment Company purchased a machine 5 years ago at a cost of $100,000. The machine had an expected life of 10 years at the time of purchase, and it is being depreciated by the straight-line method by $10,000 per year. If the machine is not replaced, it can be sold for $10,000 at the...

Corporate Finance [ 2 Answers ]

In July 2005, American Airlines (AMR) had a market capitalization of $2.3 billion, debt of $14.3 billion, and cash of $3.1 billion. American Airlines had revenues of $18.9 billion. British Airways (BAB) had a market capitalization of $5.2 billion, debt of $8.0 billion, cash of $2.9 billion, and...

Corporate Finance [ 2 Answers ]

Hi guys I have a question on Corporate Finance that I need help badly. Advice. Thanks. Here's the question: You are given the following information about the stock market and 3 companies A, B, C. For the next period the return on the market portfolio is 11% and the riskless rate is 3%....

Corporate finance [ 1 Answers ]

Star Industries has not been growing since past 20 years because of certain legal hazards. It earns Rs. 15 per share per year and pays it all out to stockholders. The stockholders have alternative, equivalent risk ventures yielding 20 percent per year on average. What is the worth of one share of...

Corporate Finance [ 1 Answers ]

I am practising for my midsem exam tomorrow and having problems with one question which says to find out the years of the loan taken out. Loan - 100,000 Interest Rate - 12% compounded quarterly Quarterly repayments are - $5904.74 I have tried doing the problem but I am confused as to which...


View more questions Search