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What is the firms EBIT

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Question - Icon Investments has 5 million shares outstanding and pays interest of $7 million per year. Its EPS is $0.10 and it pays an annual preference dividend of $2.5 million. What is the firm's EBIT, given that it pays tax at 30%?

Approximately $4.29 million

Approximately $11.29 million

Approximately $7.71 million

Approximately $9.54 million

None of the other answers is correct

Reference no: EM132556485

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