et siDENTIAL-Training Banking Shopping luse n! aYoutde Instructions Select the b
ID: 2334867 • Letter: E
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et siDENTIAL-Training Banking Shopping luse n! aYoutde Instructions Select the best answer Timed Test This test has a time limit of 45 minutes.This test will save and submit automatically when the time expires Warnings appear when half the time, 5 minutes, 1 minute, and 30 seconds remain. Multiple Attempts Not allowed. This test can only be taken once. Force Completion Once started, this test must be completed in one sitting Do not leave the test before dlicking Save and Submit Remaining Time: 25 minutes, 29 seconds. Question Completion Status: Moving to another question will save this response. Question 2 of 10 Question 2 1 points The firm's tax rate is 20% in r e ethe r 's ope ating The firm has net income of S4 million, operating revenues ofS265 million, and $20 million of interest expense expenses? O a. $ 225 million O b. $ 230 million c. $ 235 million O d.$ 240 million e. $250 million Question 2 of 10 Moving to another question will save this response. 2012 30 51.39 PM 2017-10-4.35 PM 2018-054.49.AM 7.01 AM articular.neeflesExplanation / Answer
In Millions Net Income $4.00 Net Income before Tax = $4/(1-20%) $5.00 Add: Interest Expense $20.00 EBIT $25.00 Operating Revenue - EBIT = Operating Expense Operating expense = $265 - $25 $240.00 Check Operating Revenue $265.00 Less: Operating Expense -$240.00 Operating Profit = EBIT $25.00 Less interest -$20.00 EBT $5.00 Less: Tax -1 Net Income $4.00
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