Louisiana State University, Shreveport FIN FIN 701 Rao Construction recently reported $20.00 million of sales, $12.60..
Rao Construction recently reported $20.00 million of sales, $12.60 million of operating costs other than
depreciation, and $3.00 million of depreciation. It had $8.50 million of bonds outstanding that carry a 7%
interest rate, and its federal-plus-state income tax rate was 40%. What was Rao’s operating income, or
EBIT, in million?
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