Question

In: Finance

Consider the following data for MNO Corporation: Sales $3,000; Operating expenses = $2,616.2, Depreciation= $100, tax rate = 45%. What is the after tax EBIT?

Consider the following data for MNO Corporation: Sales $3,000; Operating expenses = $2,616.2, Depreciation= $100, tax rate = 45%. What is the after tax EBIT? Select one:

a. 230

b. 340

c. 155%

d. $200

e. $170.28

Solutions

Expert Solution

The option (c) is right option.

 

 

Explanation:

EBIT = Sales - Operating costs - Depreciation

        = $3,000 - $2,616 - $100

       = $384 - $100

        = $284

 

After tax EBIT = $284 - ( $284*45% )

                         = $284 - $127.80

                         = $155%

 

Hence, the answer is option ( c ).

 

Kindly upvote my answer. Thank you.

Hence, the answer is option c.

Junaid answered 2 years ago
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