Use the Information for the Question(s) Below

question 58

Multiple Choice

Use the information for the question(s) below.
Fly by Night Aviation (FBNA) expects to have net income next year of $24 million and free cash flow of $27 million. FBNA's marginal corporate tax rate is 40%.
-FBNA's EBIT is closest to:

• A) $43 million
• B) $40 million
• C) $45 million
• D) $60 million

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Definitions:

Hamate

A carpal bone situated on the lower outside edge of the hand, distinguished by its large hook-like projection.

Femur

The thigh bone, which is the longest and strongest bone in the human body, connecting the hip to the knee.

Tibia

One of the two large bones in the lower leg, the tibia is situated between the knee and ankle, often referred to as the shin bone.

Fibula

A long, thin bone located on the lateral side of the tibia in the lower leg.