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Unformatted text preview: Points Earned: 5.0/5.0 Correct Answer(s): C 16. Companies generate income from their &quot;regular&quot; operations and from things like interest on securities they hold, which is called non-operating income. Mitel Metals recently reported $9,000 of sales, $6,000 of operating costs other than depreciation, and $1,500 of depreciation. The company had no amortization charges and no non-operating income. It had issued $4,000 of bonds that carry a 7% interest rate, and its federal-plus-state income tax rate was 40%. What was the firm's operating income, or EBIT? A) $1,400 B) $1,100 C) $1,200 D) $1,500 E) $1,300 Points Earned: 5.0/5.0 Correct Answer(s): D...
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