Suppose that Redwood Books has a reported net income of $10 million, an operating income (EBIT) of $13.4 million, and a tax rate of 20.00% According to the video, which of the following formulas correctly describes the relationship between net income (NI), EBT, and the tax rate ( t )? EBT=NI(1t)EBT=ttNIEBT=NI+(1t)EBT=NIt Plugging in $10 million for NI and 20.00% in for t into the previous formula yields an EBT of $ million. According to the video, which of the following most accurately describes the refationship between opertaing income (EBIT) and EBT? (Hint: Let interest expense be noted as I ). EBT=EBH+I EBT=EBHt EBT=TFnT EBT=EBITI Plugging in the figure you calculated for EBT and $13,400,000 in for EBT into the previous formula, and solving for I yields an interest expense Now it's time for you to practice what you've learned. Suppose that Redwood Books has a reported net income of $20 million, an operating income (EBT) of $2.5.6million, and a tax rate of 20.00%. Redwood Books has an interest expense of \$ million True or False: If operating income (EBIT) and interest expenses both increase, then net income must increase as well. True False Suppose that Redwood Books has a reported net income of $10 million, an operating income (EBIT) of $13.4 million, and a tax rate of 20.00% According to the video, which of the following formulas correctly describes the relationship between net income (NI), EBT, and the tax rate ( t )? EBT=NI(1t)EBT=ttNIEBT=NI+(1t)EBT=NIt Plugging in $10 million for NI and 20.00% in for t into the previous formula yields an EBT of $ million. According to the video, which of the following most accurately describes the refationship between opertaing income (EBIT) and EBT? (Hint: Let interest expense be noted as I ). EBT=EBH+I EBT=EBHt EBT=TFnT EBT=EBITI Plugging in the figure you calculated for EBT and $13,400,000 in for EBT into the previous formula, and solving for I yields an interest expense Income Statement for Years Ending December 31 (Note: Amounts listed in millions of dollars)