请问这一题在算normalized earning 时，为什么不考虑interest expense 呢？
EXHIBIT 1
FDF’S SELECT FINANCIAL DATA FOR THE YEAR ENDED DECEMBER 2012
Gross revenues from crops, livestock, feed, and so on
$2,500,000
Cost of goods sold
1,000,000
Selling, general, and administrative expenses (SG&A)
900,000
Depreciation and amortization
200,000
Tax rate
30%
Notes:
FDF carries debt in the amount of $750,000 at an interest rate of 8%, and it comprises 30% of total assets on a book value basis. Debt will be a part of the acquisition transaction.
FDF holds $200,000 in cash and short-term investments, but it will not be a part of the assets under acquisition transaction.
Q1. Using the company’s data and Hester’s assessments and estimates in Exhibits 1 and 2, FDF’s normalized operating income after taxes for 2012 is closest to:
$367,500.
$325,500.
$402,500.
