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Hello, Please Advise P1-10. Thank you!!! Interest versus dividend expense Michaels Corporation expects earnings before interest and taxes to be $50,000 for the current period.

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Please Advise P1-10.

Thank you!!!image text in transcribed

Interest versus dividend expense Michaels Corporation expects earnings before interest and taxes to be $50,000 for the current period. Assuming a flat tax rate of 21%, compute the firm's earnings after taxes and earnings available for common stockholders (earnings after taxes and preferred stock dividends, if any) under the following conditions: a. The firm pays $12,000 in interest. b. The firm pays $12,000 in preferred stock dividends. LG P1-10

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