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Chapter 3 Financial Statements, Cash Flow, and Taxes 91 (Hint: Write out the headings for an income statement, and fill in the known values. Then divide $13 million of net income by (1- T) 0.65 to find the pretax income. The difference between EBIT and taxable income must be interest expense. Use this same complete similar problems.) procedure to 3-3 INCOME STATEMENT Patterson Brothers recently reported an EBITDA of $7.5 million and net income of $2.1 million. It had $2.0 million of interest expense, and its corporate tax rate was 30%. What was its charge for depreciation and amortization? 3-4 STATEMENT OF STOCKHOLDERS' EQUITY In its most recent financial statements, Nessler Inc. reported $75 million of net income and $825 million of retained earnings. The previous retained earnings were $784 million. How much in dividends were paid to shareholders during the year? Assume that all dividends declared were actually paid. Harper Industries has $900 million of common equity on its balance sheet; its stock 3-5 MVA price is $80 per share; and its market value added (MVA) is $50 million. How many common shares are currently outstanding