Income Statement Fraser Corporation has announced that its n

Income Statement: Fraser Corporation has announced that its net income for the year ended June 30,2014 was $1353,412. The company hd EBITDA of $4967,855 and its depreciation and amoritization expense was equal to 1,112,685. The company average tax rate is 34 percent. What was its interest expense?

Solution

EBT[1-tax] =net income

[3855170-x][1-.34]= 1353412

[3855170-x] *.66= 1353412

2544412.2-.65x = 1353412

2544412.2 -1353412= .66x

x = 1191000.2/.66

         = 1,804,545.76

interest expense = 1804545.76