Little Books Inc. recently reported $3 million of net income. Its EBIT was $6 million, and its tax rate was 40%. What was its interest expense? [Hint: Write out the headings for an income statement...

Little Books Inc. recently reported $3 million of net income. Its

EBIT was $6 million, and its tax rate was 40%. What was its interest expense? [Hint: Write

out the headings for an income statement and fill in the known values. Then divide $3

million of net income by (1 " T) ! 0.6 to find the pretax income. The difference between

EBIT and taxable income must be the interest expense. Use this same procedure to com￾plete similar problems.]