It had 9000 of bonds outstanding that carry a 70 interest


Brown Office Supplies recently reported $18,500 of sales, $8,250 of operating costs other than depreciation, and $1,750 of depreciation. It had $9,000 of bonds outstanding that carry a 7.0% interest rate, and its federal-plus-state income tax rate was 40%. How much was the firm's earnings before taxes (EBT)?

$5,981
$7,398
$7,870
$5,903
$6,217

 

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Finance Basics: It had 9000 of bonds outstanding that carry a 70 interest
Reference No:- TGS0622229

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