Determine the interest expense of given net income


Motors Inc. recently reported $6 million of net income. Its EBIT was $13 million and its tax rate was 40%. What was the interest expense? Then divide $6million net income by 1-T = 0.6 to find the pre-tax income. The difference between EBIT and taxable income must be the interest expense.

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Finance Basics: Determine the interest expense of given net income
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