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What are the company earnings before interest and taxes

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Reference no: EM133164700

Question - You are given the following information for Lowell, Inc.

Sales

240,000

Debt

90,000

Dividends

5,000

Equity

30,000

Interest rate

7%

Net income

16,000

Tax rate

30%

Assume the company has no short-term debt. Also assume that all asset turnover, profit margin, and dividend payout ratios remain constant. (Hint: Prepare income statement working backwards from the bottom.)

Required - What are the company's earnings before interest and taxes (EBIT)?

Reference no: EM133164700

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