39 Q7 Bob Equipment Rental paid $64 in dividends and $517 in interest expense. The addition to retained earnings is $327 and net new equity is $400. The tax rate is 27%. Sales are $14,900 and depreciation is $570. What are the earnings before 90 interest and taxes? 91 Hint Page 3 92 IF EBT minus (27% taxes)= Net Income 93 Then Net Income/.27% = EBT 94 95 96 97 98 99 100 101 102 Sales -Costs b -Depreciation =EBIT -Interest =EBT Tax Rate 103 -Taxes (EBT x tax rate) 14,900 104 =Net Income 391 105 -dividends paid 64 106 =add to RE 327 27%