Solution to the First Question
Pre-tax Income
Pre-tax Income = Net Income / (1 – Tax rate)
= $15,000,000 / (1 – 0.25)
= $15,000,000 / 0.75
= $20,000,000
Interest Expenses
Interest Expenses is the difference between the EBIT and the Pre-tax Income
Therefore, the Interest Expenses = EBIT – Pre-tax Income
= $35,700,000 - $20,000,000
= $15,700,000
“Hence, the Interest Expenses will be $15,700,000”
PLEASE BE NOTED (More than 1 Question)
Please help. Thanks. 1. 2. Byron Books Inc. recently reported $15 million of net income. Its...
Byron Books Inc. recently reported $12 million of net income. Its EBIT was $18.8 million, and its tax rate was 25%. What was its interest expense? (Hint: Write out the headings for an income statement, and then fill in the known values. Then divide $12 million of net income by (1 - T) = 0.75 to find the pretax income. The difference between EBIT and taxable income must be interest expense. Use this same procedure to complete similar problems.) Write...
Please solve all
Byron Books Inc. recently reported $18 million of net income. Its EBIT was $42.5 million, and its tax rate was 25%. What was its interest expense? (Hint: Write out the headings for an income statement, and then fill in the known values. Then divide $18 million of net income by (1 - T) -0.75 to find the pretax income. The difference between EBIT and taxable income must be interest expense. Use this same procedure to complete similar...
Byron Books Inc. recently reported $6 million of net income. Its EBIT was $12.2 million, and its tax rate was 25%. What was its interest expense? (Hint: Write out the headings for an income statement, and then fill in the known values. Then divide $6 million of net income by (1 - T) = 0.75 to find the pretax income. The difference between EBIT and taxable income must be interest expense. Use this same procedure to complete similar problems.) Write...
Byron Books Inc. recently reported $14 million of net income. Its EBIT was $33.6 million, and its tax rate was 30%. What was its interest expense? (Hint: Write out the headings for an income statement, and then fill in the known values. Then divide $14 million of net income by (1 - T) = 0.7 to find the pretax income. The difference between EBIT and taxable income must be interest expense. Use this same procedure to complete similar problems.) Write...
Byron Books Inc. recently reported $12 million of net income. Its EBIT was $25.2 million, and its tax rate was 40%. What was its interest expense? [Hint: Write out the headings for an income statement, and then fill in the known values. Then divide $12 million of net income by (1 - T) = 0.6 to find the pretax income. The difference between EBIT and taxable income must be interest expense. Use this same procedure to complete similar problems.] Write...
Byron Books Inc. recently reported $14 million of net income. Its EBIT was $32.2 million, and its tax rate was 30%. What was its interest expense? [Hint: Write out the headings for an income statement, and then fill in the known values. Then divide $14 million of net income by (1 - T) = 0.7 to find the pretax income. The difference between EBIT and taxable income must be interest expense. Use this same procedure to complete similar problems.] Write...
eBook Byron Books Inc. recently reported $7 million of net income. Its EBIT was $10.5 million, and its tax rate was 30%, what was its interest expense? (Hint: write out the headings for an income statement, and then fill in the known values. Then divide $7 million of net income by (1 T) 0.7 to find the pretax income. The difference between EBIT and taxable income must be interest expense. Use this same procedure to complete similar problems.) Write out...
INCOME STATEMENT Byron Books Inc. recently reported $12 million of net income. Its EBIT was $26.4 million, and its tax rate was 40%. What was its interest expense? [Hint: Write out the headings for an income statement, and then fill in the knowrn values. Then divide $12 million of net income by (1-T) 0.6 to find the pretax income. The difference between EBIT and taxable income must be interest expense. Use this same procedure to complete similar problems.] Write out...
eBook Problem Walk-Through Byron Books Inc. recently reported $6 million of net income. Its EBIT was $10.8 million, and its tax rate was 25%. What was its interest expense? (Hint: Write out the headings for an income statement, and then fill in the known values. Then divide $6 million of net income by (1 - 1) = 0.75 to find the pretax income. The difference between EBIT and taxable income must be interest expense. Use this same procedure to complete...
2. Problem 3.02 (Income Statement) Problem Walk Through Byron Books Inc. recently reported 15 million of net income. Its EBIT was 25.1 million, and its tax rate was 25. What was its interest expense? (Hint: Write out the heading for an income statement, and then fill in the known values. The divide $15 million of net income by( 1 ) 0.75 to find the pretax income. The difference between EBIT and taxable income must be interest expense. Use this same...