Red Company has 20,000,000 in sales. COGS are 40% of sales. Operating costs are $4,000,000 plus depreciation expense of $100,000 and interest expense $100,000. Tax rate is 40%. They have 1,000,000 shares of stock outstanding.

Their net income is...$

EPS is $

Operating margin (EBIDT) is $

		a. 4,680,000 4.68 39%
		b. 4,680,000 4.68 40%
		c. 7,800,000 7.80 40%
		d. 7,800,000 7.80 39%