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Fraser Corporation has announced that its net income for the year ended June 30, 2013, was...

Fraser Corporation has announced that its net income for the year ended June 30, 2013, was $1,353,412. The company had EBITDA of $4,943,000, and its depreciation and amortization expense was equal to $1,114,000. The company's tax rate is 34 percent. What was its interest expense? (Round answer to 2 decimal places, e.g. 15.25.)

Interest expense

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Expert Solution

Earning before tax = Net income /(1-tax rate)

=1,353,412/0.66

=$2,050,624.24

Earning before tax = EBITDA-Depreciation and amortization-Interest

2,050,624.24=4,943,000-1,114,000-Interest

Hence ,Interest expense =1,778,375.76

jeff jeffy answered 2 years ago
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