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Problem:

New Mexico Lumber recently reported that its earnings per share were $ 5 .00. The company has 6 00,000 shares of stock outstanding. The company's interest expense was $ 3 00,000. The corporate tax rate is 40 percent.

Required:

Question 1: What was the company's operating income (EBIT)

Note: Please show how to work it out.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91148365

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