berweed the fwo firms. The Artec Book Company sold 1,400 finance lextbooks to High Tuition College for 584 each in 20x. These books cost $63 to produce. In addition, Artec Books spent $2,000 (selling expense) t penuade the college to bey its books. Artec Books borrowed $50.000 on January 1, 20XX on which it paid to percent interest, Both interest and principal were paid on Deceenber 31,200. Axte Books' tax rate is 20 percent. Amortization expense for the year was 55.000. Did Artec 8ooks male a profit in 2007 Verify your answer with an statement of income presented in good form. Troblem 9 (page 54) with the following hints and additions: - The books cost $63 each to produce. - Receipt of the principal of a loan is not revenue (it is a liability), and repayment of the principal of a loan is not an expense (it is a reduction of the liability). Interest on the loan is an expense. - Also calculate earnings per share, assuming no preferred shares and 1,000 common shares. - Calculate the amount of common dividend per share if the dividend payout ratio was 75% - If Aztec's P/E ratio was 4X, calculate the market price of each common share. - Calculate the after-tax cost of their selling exnenco