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2. Jones Manufacturing recently reported $23,500 of sales, $8,250 of operating costs other than depreciation, and $2,750 of depreciation. It had $7,000 of bonds
2. Jones Manufacturing recently reported $23,500 of sales, $8,250 of operating costs other than depreciation, and $2,750 of depreciation. It had $7,000 of bonds outstanding that carry a 7.5% interest rate, and its federal-plus-state income tax rate was 21%. How much was the firm's earnings before taxes (EBT)?
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Fundamentals of Corporate Finance
Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D.Jordan
8th Edition
978-0073530628, 978-0077861629
