The difference between ebit and taxable income must be the


Little Books Inc. recently reported $12 million of net income. Its EBIT was $28.8 million, and its tax rate was 40%. What was its interest expense? [Hint: Write out the headings for an income statement and then fill in the known values. Then divide $12 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 same procedure to complete similar Problems.] Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the nearest dollar, if necessary. $

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Financial Management: The difference between ebit and taxable income must be the
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