Hotaki is a company from Japan. It exports flowers to Europe and America. The company has operating income of $4 million. The company has $1 million bond outstanding with an interest rate of 3% a year. The bond is the only debt item on the balance sheet. If the company has an 18% corporate tax rate, what's the company's net income?
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The bond amount is $1 million with an interest rate of 3% per year. \[ \text{Interest Expense} = \$1,000,000 \times 0.03 = \$30,000 \] Show more…
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