3-2 INCOME STATEMENT Byron Books Inc. recently reported $13 million of Write out the headings for an income statement, and fill in the known values. The EBIT was $20.8 million, and its tax rate was 35%. What was its interest expense $13 million of net income by (1 -T) = 0.65 to find the pretax income. The between EBIT and taxable income must be interest expense. Use this same pro mental Concepts in Financial Management 3-3 INCOME STATEMENT Patterson Brothers recently reported an EBITDA of 575 mile 3-4 STATEMENT OF STOCKHOLDERS' EQUITY In its most recent financial statements, Inc. reported $75 million of net income and $825 million of retained earnings. The retained earnings were $784 million. How much in dividends were paid to she during the year? Assume that all dividends declared were actually paid. 3-5 MVA Harper Industries has $900 million of common equity on its balance sheet price is $80 per share, and its market value added (MVA) is $50 million. How m mon shares are currently outstanding? complete similar problems.) corporate net income of $2.1 million. It had $2.0 million of interest expense, and its was 30%. What was its charge for depreciation and amortization? 3-6 MVA Over the years, Masterson Corporation's stockholders have provided $34 capital when they purchased new issues of stock and allowed management to of the firm's earnings. The firm now has 2,000,000 shares of common stock ou and the shares sell at a price of $28 per share. How much value has Masterson ment added to stockholder wealth over the years, that is, what is Masterson's 3-7 EVA Barton Industries has operating income for the year of $3,500,000 and a 3 Its total invested capital is $20,000,000 and its after-tax percentage cost of ca What is the firm's EVA? E-8 PERSONAL TAXES Susan and Stan Britton are a married couple who file a join return, where the tax rates are based on the tax tables presented in the chapter. - their taxable income this year was $375,000. a. What is their federal tax liability? b. What is their marginal tax rate? c. What is their average tax rate? BALANCE SHEET Which of the following actions are most likely to directly inc shown on a firm's balance sheet? Explain and state the assumtio a. It issue