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Helen [10]
3 years ago
10

Rao Construction recently reported $28.00 million of sales, $12.60 million of operating costs other than depreciation, and $3.00

million of depreciation. It had $8.50 million of bonds outstanding that carry a 7.0% interest rate, and its federal-plus-state income tax rate was 40%. What was Rao's operating income, or EBIT, in millions? a. $12.40 b. $11.66 c. $11.78 d. $13.52 e. $12.15
Business
1 answer:
stich3 [128]3 years ago
6 0

Answer:

a. $12.40

Explanation:

EBIT stands for earnings before interest and taxes; therefore, interest and taxes rates should not be considered. The EBIT is determined as the amount from sales deducted by operating costs and depreciation. The EBIT is:

EBIT = \$28.00-\$12.60-\$3.00\\EBIT=\$12.40

The answer is alternative a. $12.40.

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Answer:

Floor ready shipment

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In this case, Colin receive delivery and when open the containers he finds that the items are priced and packaged. So, it is a floor ready shipment.

3 0
3 years ago
Colson Inc. declared a $320,000 cash dividend. It currently has 12,000 shares of 7%, $100 par value cumulative preferred stock o
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Answer:

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The dividedn for common stockholders is 320000 - (84000 * 2) = $152000

4 0
3 years ago
Jasper is interested in making a lot of money. He is a very good salesperson. People tell him he could sell sand in the Sahara D
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3 years ago
Read the section of the article named "Duties."
Elden [556K]

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4 0
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