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Rao Construction recently reported $20.50 million of sales, $12.60 million cost of goods sold, and $3.00 million of depreciation and amortization. It had $8.50 million
Rao Construction recently reported $20.50 million of sales, $12.60 million cost of goods sold, and $3.00 million of depreciation and amortization. It had $8.50 million of bonds outstanding that carry a 7.0% interest rate, and its federal-plus-state income tax rate was 40%. What was Rao's operating income, or EBIT?
a. 3.21m
b. 3.57m
c. 3.97m
d. 4.41m
e. 4.90m
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