Homework SourseFor the following calculate the companys net income EAT use
For the following, calculate the company\'s net income (EAT) (use only what data you need): Sales = 2,000. Income tax rate = 50%. COGS = 10% of sales. SG&A expense = 100. Interest expense = 50. Dividend payout ratio = 25%.
825.00
850.00
309.37
412.50
| 825.00 | |
| 850.00 | |
| 309.37 | |
| 412.50 |
Solution
Answer = 825
| In $ | |
| Sales | 2,000 |
| COGS | 200 |
| SG&A expense | 100 |
| Earnings before interest and tax (EBIT) | 1,700 |
| Interest | 50 |
| Eatnings before tax (EBT) | 1,650 |
| Tax @50% | 825 |
| Earnings After Tax (EAT) | 825 |
