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LA Lumber recently reported that its earnings per share were $2.00. The company has 300,000 shares of common stock outstanding, its interest expense is $250,000,
LA Lumber recently reported that its earnings per share were $2.00. The company has 300,000 shares of common stock outstanding, its interest expense is $250,000, and its corporate tax rate is 40 percent. What is the company's operating income?
A. $1,500,000
B. $1,750,000
C. $1,000,000
D. $1,250,000
E. $750,000
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Financial Management Principles And Applications
Authors: Arthur J. Keown
9th Edition
013033362X, 9780130333629
