Rao Construction Recently Reported $28

question 128

Multiple Choice

Rao Construction recently reported $28.00 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 7.0% interest rate,and its federal-plus-state income tax rate was 40%.What was Rao's operating income,or EBIT,in millions?

• A) $11.66
• B) $11.78
• C) $12.15
• D) $12.40
• E) $13.52

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