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Pharoah Corporation has announced that its net income for the year ended June 30, 2017, was...

Pharoah Corporation has announced that its net income for the year ended June 30, 2017, was $1,353,412. The company had EBITDA of $4,994,000, and its depreciation and amortization expense was equal to $1,122,000. The company's average tax rate is 34 percent. What was its interest expense? (Round answer to 2 decimal places, e.g. 15.25.)

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Expert Solution

EBITDA 4,994,000
Less:depreciation and amortization expense 1,122,000
EBIT 3872000
Less:interest(3872000-2050624.24) $1821375.76(Approx)
EBT(100%)(1,353,412/0.66) 2050624.24
Less:tax@34%(2050624.24*34%) 697212.24
Net income(66%) 1,353,412

jeff jeffy answered 2 years ago
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