Answer:
Interest= $1250000
Explanation:
We know that:
EBIT
interest (-)
=earnings before taxes
tax (-)
=Net profit
EBIT= 6250000
Interest= ?
t= 0,35
Net profit= 3250000
interest= [netprofit/(1-t)]- EBIT
interest= (3250000/0,65)-6250000
interest= 1250000
Tax=(EBIT-interest)*0,35= 1750000