A firms Income Statement reveals EBIT = $12 million, Interest payments = $4 million, and Depreciation =

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A firm’s Income Statement reveals EBIT = $12 million, Interest payments = $4 million, and Depreciation = $2 million. The corporate tax rate is 30%. The firm’s corporate tax liability should be

a. $1.8 million

b. $2.4 million

c. $3.0 million

d. $4.0 million Hint: Depreciation has already been deducted from EBIT.

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Stock Markets And Corporate Finance A Primer

ISBN: 9781800611474,9781800611498

1st Edition

Authors: Michael Dempsey

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Question Posted: Jul 23, 2024 07:01 AM

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A firms Income Statement reveals EBIT = $12 million, Interest payments = $4 million, and Depreciation =

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Stock Markets And Corporate Finance A Primer

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