Question

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

Answer 1

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