New Mexico Lumber recently reported that its earnings per share were $3.0. The company has 400,000 shares of stock outstanding. The company's interest expense was $500,000. The corporate tax rate is 32 percent. What was the company's operating income (EBIT)? If necessary, round it to a whole dollar.

New Mexico Lumber recently reported that its earnings per share were $3.0. The company has 400,000 shares of stock outstanding. The company's interest expense was $500,000. The corporate tax rate is 32 percent. What was the company's operating income (EBIT)? If necessary, round it to a whole dollar.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 10P: The Moore Corporation has operating income (EBIT) of 750,000. The companys depreciation expense is...

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