What was its interest expense

Assignment Help Financial Management

Reference no: EM131304623

Molteni Motors Inc. recently reported $3.25 million of net income. Its EBIT was $7.5 million, and its tax rate was 35%. What was its interest expense? Round your answer to the nearest dollar. Enter your answer in dollars.

Reference no: EM131304623

Questions Cloud

Undifferentiated lump sum in settlement of the whole claim : Farmer Giles fed grain, purchased from the Fowl Supply Co Ltd in November 2013 to his fowls, as a result of which most of his fowls died. He lost profits on egg sales from 2013-2015 amounting to $250,000, had a 3 year contract to supply eggs to a lar..

European style put option with a strike price : A stock's price is $100. Over each of the next two three month periods it is expected to go up by 15% or down by 10%. The risk free rate is 4% p.a. The stock pays a dividend of $1 per quarter. Assume the option expires the day before the second perio..

Operations after all operating costs : The Talley Corporation had a taxable income of $355,000 from operations after all operating costs but before (1) interest charges of $71,000, (2) dividends received of $21,300, (3) dividends paid of $14,200, and (4) income taxes.

Calculating aftertax cost of debt : Calculating Cost of Debt. ICU Window, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with seven years to maturity that is quoted at 108 percent of face value. The issue makes semiannual payments and has an embedd..

What was its interest expense : Molteni Motors Inc. recently reported $3.25 million of net income. Its EBIT was $7.5 million, and its tax rate was 35%. What was its interest expense?

What are advantages-disadvantages do the mutual funds : You recently graduated from college, and your job search led you to S&S Air. Because you felt the company's business was headed skyward, you accepted the job offer. What are advantages/disadvantages do the mutual funds offer compared to company stock..

What is the percentage price change of bonds : Bond J has a coupon rate of 4.1 percent. Bond S has a coupon rate of 14.1 percent. Both bonds have nine years to maturity, make semiannual payments, a par value of $1,000, and have a YTM of 9.2 percent. If interest rates suddenly rise by 3 percent, w..

Bonds on market making annual payments : Barnes Enterprises has bonds on the market making annual payments, with 14 years to maturity, a par value of $1,000, and a price of $972. At this price, the bonds yield 8.4 percent. What must the coupon rate be on the bonds?

What is the stocks current intrinsic stock price : A company is expected to have free cash flows of $0.75 million next year. The weighted average cost of capital is WACC = 10.5%, and the expected constant growth rate is g = 6.4%. The company has $2 million in short-term investments, $2 million in deb..

User Account

All Pages