Rao Construction reported $20.50 million in sales and $12.60 million in operating costs excluding depreciation, with $3.00 million in depreciation. It had $8.50 million in bonds at 7.0% interest and a 40% tax rate.
Rao Construction recently reported $20.50 million of sales, $12.60 m.pdf
1. Rao Construction recently reported $20.50 million of sales, $12.60 million of operating costs
other than depreciation, and $3.00 million of depreciation. It had $8.50 million of bonds
outstanding that carry a 7.0% interest rate, and its federal-plus-state income tax rate was 40%.
What was Rao's operating income, or EBIT, in millions?
Solution