Molteni Motors Inc. recently reported $3.75 million of net income. Its EBIT was $8 million,...
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Molteni Motors Inc. recently reported $3.75 million of net income. Its EBIT was $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 $3.75 million net income by 1 T = 0.6 to find the pre-tax income. The difference between EBIT and taxable income must be the interest expense.) Round your answer to the nearest dollar. Enter your answer in dollars. For example, an answer of $1.2 million should be entered as 1,200,000.
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