Difference between ebit and taxable income

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Reference no: EM131619682

Molteni Motors Inc. recently reported $6 million of net income. Its EBIT was $13 million, and its tax rate was 40%. What was its interest expense? (Hint: Write out the heading for and income statement, and then fill in the known values. Then divide $6 million net income by 1 – T = 0.6 to find the pre-tax income. The difference between EBIT and taxable income must be the interest expense. Use this procedure to work some of the other problems.)

Reference no: EM131619682

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