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. Cute Camel is able to achieve this level of increased sales, but its interest costs increase from 1 0 % to 1 5 %

. Cute Camel is able to achieve this level of increased sales, but its interest costs increase from 10% to 15% of earnings before interest and taxes (EBIT).
2. The companys operating costs (excluding depreciation and amortization) remain at 60.00% of net sales, and its depreciation and amortization expenses remain constant from year to year.
3. The companys tax rate remains constant at 40% of its pre-tax income or earnings before taxes (EBT).
4. In Year 2, Cute Camel expects to pay $100,000 and $938,400 of preferred and common stock dividends, respectively.

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