• The National Cement Company was established in 1978 under with a vision to create new avenues for industry using local resources and raw materials.
• Accordingly, the National Cement Co. was set up to produce the base material to fuel the anticipated construction boom in the UAE and the region.
• The company primarily servers the UAE and GCC markets with an array of branded cement products.
• Today, with an annual production capacity of more than 22 million tons of cement, the National Cement Co. is one of the largest cement manufacturers in the UAE.
• The National Cement Company has recently reported $2.7 million of net income.
• The firms operating income is $6.2 million, and the applicable tax rate is 40%.

Calculate the amount of interest expensethat has to be paid by the National Cement Company.

Show your steps on the financial statement and include all workings. (2 points)