Question
Elaine Case, CFA, is an equity analyst with Prudential Securities. She has gathered the following information about Lone Star Plastics: (6 points) Assets: $100,000; Net
Elaine Case, CFA, is an equity analyst with Prudential Securities. She has gathered the following information about Lone Star Plastics: (6 points)
- Assets: $100,000;
- Net profit margin: 6.5%;
- Tax rate: 35%;
- Debt ratio: 40.0%;
- Interest rate: 7.5 %;
- Total assets turnover: 3.0.
What is Lone Star's EBT (earning before tax)? Show your calculations
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The Finance Book
Authors: Stuart Warner, Si Hussain
1st Edition
1292123648, 978-1292123646
