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The Burger Joint Paid $420 in Dividends and $611 in Interest

Question 31

Multiple Choice

The Burger Joint paid $420 in dividends and $611 in interest expense. The addition to retained earnings is $397.74 and net new equity is $750. The tax rate is 34%. Sales are $6,250 and depreciation is $710. What are the earnings before interest and taxes?


A) $1,576.67
B) $1,582.16
C) $1,660.00
D) $1,780.82
E) $1,850.00

Correct Answer:

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