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What was interest expense of holly art galleries

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Reference no: EM132933184

Problem 1: Holly's Art Galleries recently reported $15.8 million of net income. Its EBIT was $24 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 $15.8 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 your answer in dollars. For example, an answer of $1.2 million should be entered as 1,200,000. Round your answer to the nearest dollar.

Reference no: EM132933184

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