Byron books inc. recently reported $13 million of net income. its ebit was $20.8 million, and its tax rate was 35%. what was its interest expense?

$0.8million

Explanation:

Net income of any corporation can be calculated as follows:

Net income=EBIT-interest expense-tax expense

Net income=$13 million

Interest expense=?

tax expense=(EBIT- interest expense)*35%=($20.8million- interest expense)*35%

13=20.8-interest expense-($20.8million- interest expense)*35%

13=20.8-interest expense-(7.28-0.35*interest expense)

13=20.8-interest expense-7.28+0.35*interest expense

13=13.52-0.65*interest expense

13-13.52=-0.65*interest expense

-0.52=-0.65*interest expense

interest expense=-0.52/-0.65=$0.8million

forbearance of student loan payments. under forbearance, your loan payments are postponed (or reduced) but interest continues to accrue during the period of forbearance. if you don't pay the interest during that period, the interest may be “capitalized,” which means it is added to your principal balance.

answer; complain or request hazard correction from your employer;