Multiple Choice
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?
A) $3.21
B) $3.57
C) $3.97
D) $4.41
E) $4.90
Correct Answer:
Verified
Correct Answer:
Verified
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