3. Income statement cormon shareholden. Consider the folowiog scrnarial increase by zs\% next year. interest and tames (finm). amortration expenses memain constant from vear to vear 3. The company's tax rate remains constant at 40% of is pre-tix income of earnings belore cheses (far). 4. In Yes 2, Cute Comel expects to pay $100,000 and $1,025,100 of preferred and common stock dividendr, respectively. whole dollar. Ch 02: Assignment - Firnancial Statements, Cash Flow, and Taxes receve in annual dividends. fram in Vear 1 to in Vear 2. in Year 1 in is veor 2. - It cantribution to retained eamings, This is becavse of the item reported in the ixcone statement involve parmenta and recipas of cash