The Boone corporation has operating income of 950,000$ . Boone Corp is 100 perce
ID: 2814783 • Letter: T
Question
The Boone corporation has operating income of 950,000$ . Boone Corp is 100 percent equity financed and it faces marginal tax rate of 35% .assume that the firm has no amortization expense . The company ‘s earning before taxes are and its net income is The Boone corporation has operating income of 950,000$ . Boone Corp is 100 percent equity financed and it faces marginal tax rate of 35% .assume that the firm has no amortization expense . The company ‘s earning before taxes are and its net income is The Boone corporation has operating income of 950,000$ . Boone Corp is 100 percent equity financed and it faces marginal tax rate of 35% .assume that the firm has no amortization expense . The company ‘s earning before taxes are and its net income isExplanation / Answer
Operating income is equal earnings before taxes = $ 950,000 /. since there was no interest and depreciation/amortization.
Operating income is equal earnings before taxes = $ 950,000 /. since there was no interest and depreciation/amortization.
Net Income = Earnings before tax * (1-Tax Rate) Net Income = 950000*(1-0.35) Net Income = $ 617,500 /.