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A firm recently reported $30,000 of sales, $10,000 of operating costs other than depreciation, and $4,000 of depreciation. It had $10,000 of debt outstanding that
A firm recently reported $30,000 of sales, $10,000 of operating costs other than depreciation, and $4,000 of depreciation. It had $10,000 of debt outstanding that carries a 5% interest rate (paid annually) and its federal-plus-state income tax rate is 25%. Compute the firms earnings before taxes (EBT).
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