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Calculate Net Income if a company doubled their operating income

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Company X recently reported net income of $385,000. The tax rate is 40 percent. The company's interest expense was $200,000. What would have been the company's net income if they would have been able to double their operating income (EBIT), assuming that the company's tax rate and interest expense remain unchanged?

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Solution Summary

This solution contains step-by-step calculations in an Excel file to determine the net income of Company X.

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