Question

During 2019, company XYZ had EBIT € 4049; net income € 1646; additions to retained earnings € 402 and tax rate 35 percent.

Given this information, calculate the taxes paid.
Given this information, calculate the interest expense.
What is the dividend payout ratio? Express your answer as %.

We got the solution previously from an expert but the calculations were wrong - answer from the teacher -

mistakes in calculations of standard deviations of each stock.

Regarding to first 3 questions please note that net income is the same as profit after tax.

Answer 1

Taxes paid
	Net Income	€ 1,646.00
	Tax	35%
	Taxes paid=	1646*35%/(1-35%)
	Taxes paid=	€     886.31
Interest paid
	Profit after tax	€ 1,646.00
	Taxes paid	€     886.31
	Profit before tax	€ 2,532.31
	Profit before interest and tax	€ 4,049.00
	Interest paid=	4049-2532.31
	Interest paid=	€ 1,516.69
Dividend payout ratio
	Profit after tax	€ 1,646.00
	Addition to retained earning	€     402.00
	Dividend paid	1646-402
	Dividend paid	€ 1,244.00
	Payout ratio=	1244/1646
	Payout ratio=	75.58%