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11. In 2019, LSP company reported a net income of $57,000. They had reported earnings before interest and taxes (EBIT) of $150,000. Additionally, we know that the government's tax rate on businesses is 40%. What was their interest expense? * $55,000 O $7,500 $95,000 O $70,200 None of the above

11. In 2019, LSP company reported a net income of $57,000. They had reported earnings before interest and taxes (EBIT) of $150,000. Additionally, we know that the government's tax rate on businesses is 40%. What was their interest expense? * $55,000 O $7,500 $95,000 O $70,200 None of the above

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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11. In 2019, LSP company reported a net income of $57,000. They had reported earnings before interest and taxes (EBIT) of $150,000. Additionally, we know that the government's tax rate on businesses is 40%. What was their interest expense? * $55,000 O $7,500 $95,000 $70,200 None of the above
Transcribed Image Text:11. In 2019, LSP company reported a net income of $57,000. They had reported earnings before interest and taxes (EBIT) of $150,000. Additionally, we know that the government's tax rate on businesses is 40%. What was their interest expense? * $55,000 O $7,500 $95,000 $70,200 None of the above
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