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Unformatted text preview: $700,000 $200,000 $15,000 $4,000,000 $2,000,000 Robinson Corp. $300,000 $200,000 $100,000 $6,000,000 $4,000,000 * Note: Many analysts use the "after tax" cost of interest (i.e., $1 of interest only costs $0.75 if a company faces a 25% tax rate) in calculating the return on assets. The idea is to determine how much higher income would be without the interest impact. For purposes of this problem you may simply use the interest expense shown....
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This note was uploaded on 02/29/2012 for the course ACCOUNTING 101 taught by Professor Hudack during the Spring '11 term at FIU.
- Spring '11