Question: Byron Books Inc. recently reported $13 million of net income. Its EBIT was $28.6 million, and its tax rate was 35%. What was its interest expense? [Hint: Write out the headings for an income statement, and then fill in the known values. Then divide $13 million of net income by (1 - T) = 0.65 to find the pretax income. The difference between EBIT and taxable income must be interest expense.