Solution-Find what was the interest expense

Find what was the interest expense

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Question 1: Holly's Art Galleries recently reported $7.9 million of net income. Its EBIT was $12 million, and its federal tax rate was 21% (ignore any possible state corporate taxes). What was its interest expense? (Hint: Write out the headings for an income statement and then fill in the known values. Then divide $7.9 million net income by 1 - T = 0.79 to find the pre-tax income. The difference between EBIT and taxable income must be the interest expense.) Enter answer in dollars. For example, an answer of $1.2 million should be entered as 1,200,000. Round answer to the nearest dollar.

Reference no: EM132649728

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Find what was the interest expense

Reference no: EM132649728

Reference no: EM132649728

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