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1. Blun Hamster is able to actieve this level of increased sales, but its interest costs increase from 10% to 15% of earnings before interest

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1. Blun Hamster is able to actieve this level of increased sales, but its interest costs increase from 10% to 15% of earnings before interest and taxes (EBIT). 2. The company's operating costs (excluding deprecabion and amortization) remain at 65% of net sales, and its depreciation and amortization expenses remain constant from year to yeac. 3. The company's tax rate remains constant at 25% of its pre-tax income or earnings before taxes (EBT). 4. In Vear 2. Blue Hamster expects to pay $200,000 and $2,280,656 of preferred and common stock dividends, respectively. Complete the Vear 2 income statement data for Elue Hamstet, then answer the quertions that follows Be sure to round each dollar value to the nearest whole dollar: - In Year 2. If Blue Hamster has 5,000 ahares of preierred scodk issued and outstanding, then each preferred share should expect to receive in annual dividends. - If Blve Harmuter has 400,000 shares of common stock issued and outstanding, then the fim's eamings per share (EPS) is axpected to change from in vear 1 to in vear 2 . Given the results of the previous income statement calculations, complete the following statements: - Bilue Hiamate's eamings before interest, taxes, deprecation and amertization (EBITDA) value changed from in Voar 1 to in year 2 . - it is to say that Dloe Hamiter's net inflows and outhois of cash at the end of Years 1 and 2 are equal to the compary's annual contribusion to retained eamings. $4,194,250 and $5,121,531, respectively. Tha is because of the itans reported in the income itatement invalve permenes and recepts of cash

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