Explanation: The tax rate formula is typically calculated as Tax Expense divided by Earnings Before Taxes (EBT).

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Explanation: The tax rate formula is typically calculated as Tax Expense divided by Earnings Before Taxes (EBT). EBIT is not used in this formula. EBIT stands for Earnings Before Interest and Taxes, which is a measure of a company's profitability that excludes interest and income tax expenses. It presents a picture of the company's profitability for a given period. However, it is not used in the calculation of the tax rate. The tax rate is calculated based on the tax expense and the earnings before taxes, not the earnings before interest and taxes

Posted Date: May 18, 2024 05:05 PM

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Explanation: The tax rate formula is typically calculated as Tax Expense divided by Earnings Before Taxes (EBT).

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