Computing Interest Based on Other Amounts
Not what you're looking for?
Johnson Corporation has announced that its net income for the year ended June 30, 2008, is $1,000,000. The company had an EBITDA of $ 4,900,000, and its depreciation and amortization expense was equal to $1,500,000. The company's tax rate is 34 percent. What is the amount of interest expense for the Corporation?
a. $1,590,749
b. $1,884, 849
c $880, 659
d. $1,489,500
Purchase this Solution
Solution Summary
This solution illustrates how to use a knowledge of the income statement components to derive the amount of interest expense incurred.
Solution Preview
Net income $1,000,000 (EBT*(1-.34))
EBT $1,515,152 ...
Purchase this Solution
Free BrainMass Quizzes
Team Development Strategies
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.
MS Word 2010-Tricky Features
These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.
Production and cost theory
Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.
Academic Reading and Writing: Critical Thinking
Importance of Critical Thinking
Introduction to Finance
This quiz test introductory finance topics.