The interest expense can be calculated as :
As per the income statement :
EBIT
less interest
EBT
Less taxes
NET INCOME
Let the interest expense be X,
(26.4 - X) *0.6 = $12
solving for x we get,
X = $6.4 million which is $6400,000.
Or, EBIT - taxable income is interest
taxable income is= net income/ taxes '
= 12/0.6 = $20
so 26.4 - 20 = $6.4million or 64,000,00 is the interest expense.
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