4. The Coronach Corporation recently paid $2,600,000 in dividends and $1,600,000 in interest expense. For the year just ended the addition to retained earnings was $2,100,000 and net new equity was $851,870. The tax rate is 22 percent. Sales are $17,125,000 and depreciation is $8,555,600. A. What are the earnings before interest and taxes? B. Calculate the interest tax shield for the year. 5. The Adagio Corporation recently purchased a long-term asset for $4,000,000. The company's CFO expects that the asset will have a 5 year life. The asset has an 25% CCA rate. At the end of year five it is expected that the company will be able to sell the asset for $500,000. A. Using accelerated depreciation, determine the value of the terminal loss or recapture at the end of year five. B. Assuming a 20% tax rate calculate the tax savings due to CCA in year four.