You are given the following information for Lowell, Inc

Subject:FinancePrice:2.87 Bought7

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You are given the following information for Lowell, Inc.

Sales240,000

Debt110,000

Dividends5,000

Equity30,000

Interest rate7%

Net income16,000

Tax rate30%

Assume the company has no short-term debt. Also assume that all asset turnover, profit margin, and dividend payout ratios remain constant. (Hint: Prepare income statement working backwards from the bottom.)

What are the company's earnings before interest and taxes (EBIT)?

A.27,057

B.27,757

C.28,457

D.29,157

E.29,857

F.30,557

G.31,257

H.31,957