Question: Elaine Case, CFA, is an equity analyst with Prudential Securities. She has gathered the following information about Lone Star Plastics: (6 points) Assets: $100,000; Net

Elaine Case, CFA, is an equity analyst with Prudential Securities. She has gathered the following information about Lone Star Plastics: (6 points)

  • Assets: $100,000;
  • Net profit margin: 6.5%;
  • Tax rate: 35%;
  • Debt ratio: 40.0%;
  • Interest rate: 7.5 %;
  • Total assets turnover: 3.0.

What is Lone Star's EBT (earning before tax)? Show your calculations

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