Moose Industries has a corporate tax rate of 25%.Last yearthe c company realized $14,000,000 in operating income (EBIT). Its annual interest expense is $1,500,000. What wasthe company's net income for the year?O a. $9,375,000O b. $10,500,000Oc. $3,125,000O d. $11,625,000O e. $12,500,000

To find the net income, we need to deduct the interest expense and taxes from the operating income…

Answered: Moose Industries has a corporate tax…

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

Problem 1PS

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Moose Industries has a corporate tax rate of 25%. Last year the c company realized $14,000,000 in operating income (EBIT). Its annual interest expense is $1,500,000. What was the company's net income for the year? O a. $9,375,000 O b. $10,500,000 Oc. $3,125,000 O d. $11,625,000 O e. $12,500,000