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According to the video, which of the following formulas correctly describes the relationship between net income (NI), EBT, and the tax rate (t)? O EBT
According to the video, which of the following formulas correctly describes the relationship between net income (NI), EBT, and the tax rate (t)? O EBT = NI X (1 t) O EBT = NI Xt O EBT = NI + (1 - 1) O EBT = NI 1-1 Plugging in $15 million for Nl and 20.00% in fort into the previous formula yields an EBT of $ 18.75 million. According to the video, which of the following most accurately describes the relationship between opertaing income (EBIT) and EBT? (Hint: Let interest expense be noted as I). EBT = EBIT 1 O EBT = EBIT - I O EBT = EBIT + 1 O EBT = EBIT XI Plugging in the figure you calculated for EBT and $19,350,000 in for EBIT into the previous formula, and solving for I yields an interest expen of $ 0.6 million. low it's time for you to practice what you've learned. uppose that Redwood Books has a reported net income of $40 million, an operating income (EBIT) of $50.7 million, and a tax rate of 2 Ledwood Books has an interest expense of $ million
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