Bob Equipment Rental paid $64 in dividends and $517 in interest expense. The addition to retained earnings
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Question:
Bob Equipment Rental paid $64 in dividends and $517 in interest expense. The addition to retained earnings is $327 and net new equity is $400. The tax rate is 27%. Sales are $14,900 and depreciation is $570. What are the earnings before interest and taxes?
| Sales | ||
| -Costs | ||
| -Depreciation | ||
| =EBIT | ||
| -Interest | ||
| = EBT | ||
| Tax Rate | 27% | |
| -Taxes (EBT x tax rate) | ||
| =Net Income | ||
| -dividends paid | ||
| =add to RE |
Expert Answer:
Lets break down the given information and calculate the earnings before interest and taxes EBIT step ... View the full answer
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