QUESTION 9 1 points Save Answer Frederickson Office Supplies recently reported $12,500 of sales, $7,250 of operating costs other than depreciation, and S1,250 of depreciation. The company had no amortization charges and no non operating income. It had $8,000 ofbo s outstanding that ca y a 75% interest rate, and its fed al- plus-state income tax rate was 40%. How much was the firm's taxable income, or earnings before taxes (EBT)? Oa $3,570.00 b-$3,400.00 S3 ,74 8.50 Od.$3,935.93 Oe. $3,230.00 QUESTION 10 1 points Save Answer Which of the following statements is CORRECT? O a One drawback of EVA as a performance measure is that it mistakenly assumes that equity capital is free. O b. One way to increase EVA is to achieve the same level of operating income but with more investor-supplied capital. Oc. Actions that increase reported net income will always increase net cash flow. Od. If a firm reports positive net income, its EVA must also be positive. e. One way to increase EVA is to generate the same level ofoperating income but with less investor-supplied capital