How to Calculate Net Income
9:04
wikiHowDarron Kendrick, CPA, MA
How to Calculate Net Income
Net income is your total income after taxes, deductions, credits, and business operating expenses. There is a slightly different process for calculating your personal net income, and calculating your business net income. It involves...
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EBIT and Leverage (LO1) Charny Inc. has no debt outstanding and a total market value of 165,000. Earnings before interest and taxes, EBIT, are projected to be 21,000 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 20 percent higher. If there is a recession, then EBIT will be 25 percent lower. Charny is considering a 60,000 debt issue with a 7 percent interest rate. The proceeds will be used to repurchase shares of stock. There are currently 5,
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