Problem:
Elaine Case, CFA, is an equity analyst with Prudential Securities. She has gathered the following information about Lone Star Plastics: Assets: $100,000; Net profit margin: 6.0%; Tax rate: 40%; Debt ratio: 40.0%; Interest rate: 8.0%; Total assets turnover: 3.0.
Required:
Question: What is Lone Star's EBT (earning before tax)?
Note: Provide support for your rationale.