Chartworth Associates' financial statements indicated that the company had EBITDA of $3,145,903. It had depreciation of $633,000, and its interest rate on debt of $1.25 million was 7.5 percent. Calculate the amount of taxes the company is likely to owe.
I know 95% of this problem but am stuck on one portion
I know ebitda= 3,145,903
depreciation= (633,000)
Interest = (93,750)
which leaves an ebt of 2,419,153
Tax Rate Taxable Income
15% $0 to $50,000 (answer to this portion is 7500)
25 50,001 - 75,000 (answer to this portion is 6250)
34 75,001 - 100,000 (answer to this portion is 8500)
39 100,001 - 335,000 (answer to this portion is 91,650)
34 335,001 - 10,000,000 (708,612.02)
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$822,512
Question is can some guru explain where 708.612.02 comes from?
I've tried google and its not much of a help.
FT FG!
This post was edited by viva_la_nemo on Feb 5 2014 02:41am