Question
Plugging in the figure you calculated for EBTEBT and $13,100,000 in for EBITEBIT into the previous formula, and solving for II yields an interest expense
Plugging in the figure you calculated for EBTEBT and $13,100,000 in for EBITEBIT into the previous formula, and solving for II yields an interest expense of $ million.
Now its time for you to practice what youve learned.
Suppose that Redwood Books has a reported net income of $20 million, and operating income (EBIT) of $25.7 million, and a tax rate of 20.00%.
Redwood Books has an interest expense of $ million.
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Fixed Income Securities Tools For Todays Markets
Authors: Bruce Tuckman, Angel Serrat
3rd Edition
0470891696, 978-0470891698
