Suppose that the market value of the firm's total liabilities is $1240. What is the market value of equity? A. $2076.2 B. $1845.4 C. $1883.5 D. $1823.3 Answer Calculation of Income before taxes \& Income tax EBIT - it stands for Earnings before Interest \& Taxes. EBIT is a purely operating income before taxes. We can calculate EBIT by adding interest expenses and tax expenses back to net income and by deducting interest income from net income. EBT - it stands for Earnings before taxes. We can calculate it by adding tax expenses back to the net income. Final Answers: 1.EBITin20172.EBITin20183.EBTin20174.EBTin2018=480610440560 Suppose that the market value of the firm's total liabilities is $1240. What is the market value of equity? A. $2076.2 B. $1845.4 C. $1883.5 D. $1823.3 Answer Calculation of Income before taxes \& Income tax EBIT - it stands for Earnings before Interest \& Taxes. EBIT is a purely operating income before taxes. We can calculate EBIT by adding interest expenses and tax expenses back to net income and by deducting interest income from net income. EBT - it stands for Earnings before taxes. We can calculate it by adding tax expenses back to the net income. Final Answers: 1.EBITin20172.EBITin20183.EBTin20174.EBTin2018=480610440560