Ebit for a levered firm
For a levered firm, EBIT is equivalent to:
1. net income
2. proforma earnings
3. operating profit
4. net income before taxes
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Expected sales for the upcoming year are $4,100,000. Costs of goods sold are 65% of sales and other operating expenses are $850,000. The interest rate on ABC’s short-term debt is 10% per annum. ABC’s tax-rate is 23%.
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For a levered firm, EBIT is equivalent to: 1. net income 2. proforma earnings 3. operating profit 4. net income before taxes
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