IDNStudy.com, kung saan ang iyong mga tanong ay natutugunan ng mga eksaktong sagot. Sumali sa aming platform ng tanong at sagot upang makatanggap ng mabilis at eksaktong tugon mula sa mga propesyonal sa iba't ibang larangan.
Answer:
To calculate Lone Star Plastics' EBIT (Earnings Before Interest and Taxes) using the given data, we can use the following formula:
EBIT = Net Income / (1 - Tax Rate)
Given data:
Total assets = $5 million
Profit margin = 10%
Tax rate = 50%
Debt ratio = 40%
First, we need to calculate the Net Income using the Profit margin:
Net Income = Profit margin * Total assets
Net Income = 0.10 * $5 million
Net Income = $0.5 million
Next, we calculate EBIT using the Net Income and Tax rate:
EBIT = $0.5 million / (1 - 0.50)
EBIT = $0.5 million / 0.50
EBIT = $1 million
Therefore, Lone Star Plastics' EBIT is $1 million.