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A corporation had sales of $2,250,000, cost of goods sold of $1,425,000 and operating expenses of $620,000. If the firm had interest expense of $18,000
A corporation had sales of $2,250,000, cost of goods sold of $1,425,000 and operating expenses of $620,000. If the firm had interest expense of $18,000 in a tax rate of 21% what would be the addition to retain earnings if the firm paid $70,000 in common stock dividends?
a. 147,730
b. 91,950
c. 77,730
d. none
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