Molteni Motors Inc. recently reported $3 million of net income. Its EBIT was $7 million, and its tax rate was 40%. What was its interest expense? Round your answer to the nearest dollar. (Hint: Write out the headings for an income statement and then fill in the known values. Then divide $3 million net income by 1 - T = 0.6 to find the pretax income. The difference between EBIT and taxable income must be the interest expense. Use this procedure to work some of the other problems.) Enter your answer in dollars. For example, an answer of $1.2 million should be entered as 1,200,000.
In its most recent financial statements, Del-Castillo Inc. reported $70 million of net income and $940 million of retained earnings. The previous retained earnings were $927 million. How much in dividends did the firm pay to shareholders during the year? Enter your answer in dollars. For example, an answer of $1.2 million should be entered as 1,200,000. $