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I Interest versus dividend expense. Michaels Corporation expects earnings before interest and taxes to be $40,000 for this period. Assuming an ordinary tax rate of

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I Interest versus dividend expense. Michaels Corporation expects earnings before interest and taxes to be $40,000 for this period. Assuming an ordinary tax rate of 40 percent, compute the firm's earnings after taxes and earnings available for common stockholder's (earnings after taxes and preferred stock dividends, if any) under the following conditions: a. The firm pays $10,000 in interest

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