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Please answer all thank you Interest versus dividend expense Michaels Corporat Interest versus dividend expense Michaels Corporation expects earnings before interest and taxes to be $50000 for

Please answer all, thank you!

Interest versus dividend expense Michaels Corporat

Interest versus dividend expense Michaels Corporation expects earnings before interest and taxes to be $50,000 for this period. Assuming an ordinary tax rate of 35%, compute the firm's earnings after taxes and earnings available for common stockholders (earnings after taxes and preferred stock dividends, if any) under the following conditions: a. The firm pays $12,000 in interest. b. The firm pays $12,000 in preferred stock dividends. a. Complete the fragment of Michaels Corporation's income statement below to compute the firm's earnings after taxes and earnings available for common stockholders under condition (a). (Round to the nearest dollar.) EBIT Less: Interest expense Earnings before taxes Less: Taxes (35%) Earnings after taxes Less: Preferred dividends Earnings available for common stockholders

 

Apr 03 2020 Read more Less More

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