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Little Books Inc. recently reported $7 million of net income. Its EBIT was $16.1 million, and its tax rate was 30%. What was its interest

Little Books Inc. recently reported $7 million of net income. Its EBIT was $16.1 million, and its tax rate was 30%. What was its interest expense? [Hint: Write out the headings for an income statement and then fill in the known values. Then divide $7 million net income by (1 - T) = 0.7 to find the pretax income. The difference between EBIT and taxable income must be the interest expense. Use this same procedure to complete similar Problems.] Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the nearest dollar, if necessary.

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