Use the information for the question(s)below.
Rosewood Industries has EBIT of $450 million,interest expense of $175 million,and a corporate tax rate of 21%.
-Rosewood's net income is closest to:

Question

Quizplus · Accepted Answer

To find the net income, we need to subtract the interest expenses and taxes from the EBIT
Net income= EBIT - Interest expense - Taxes
Net income= $450 million - $175 million - ($450 million-$175 million)*0.21
Net income= $450 million - $175 million - $55.125 million
Net income= $219.875 million (rounded to nearest million)
Therefore, the closest answer is B) $217 million.

Use the Information for the Question(s)below