Question
McCartney Inc. recently reported $15,500 of sales, $8,250 of operating costs other than depreciation, and $1,750 of depreciation. It had $7,500 of bonds outstanding that
McCartney Inc. recently reported $15,500 of sales, $8,250 of operating costs other than depreciation, and $1,750 of depreciation. It had $7,500 of bonds outstanding that carry a 7.0% interest rate, and its federal-plus-state income tax rate was 40%. How much was the firm's earnings before taxes (EBT)?
| $3,710.00 | ||
| $4,870.00 | ||
| $3,385.00 | ||
| $2,280.00 | ||
| $4,975.00 |
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Finance For Development
Authors: Barbara Stallings
1st Edition
0815780850, 978-0815780854
