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MolteniMotorsInc.recentlyreported$6millionofnetincome.ItsEBITwas$13million,anditstaxratewas40%.Whatwasitsinterestexpense?(Hint:Writeouttheheadingsforanincomestatement,andthenfillintheknownvalues.Thendivide$6millionnetincomeby1T=0.6tofindthepre-taxincome.ThedifferencebetweenEBITandtaxableincomemustbetheinterestexpense.Usethisproceduretoworksomeoftheotherproblems.)
MolteniMotorsInc.recentlyreported$6millionofnetincome.ItsEBITwas$13million,anditstaxratewas40%.Whatwasitsinterestexpense?(Hint:Writeouttheheadingsforanincomestatement,andthenfillintheknownvalues.Thendivide$6millionnetincomeby1T=0.6tofindthepre-taxincome.ThedifferencebetweenEBITandtaxableincomemustbetheinterestexpense.Usethisproceduretoworksomeoftheotherproblems.)
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