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Interest versus dividend expense Michaels Corporation expects earnings before interest and taxes to be $50.000 for the current period. Assuming an ordinary tax rate of

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Interest versus dividend expense Michaels Corporation expects earnings before interest and taxes to be $50.000 for the current period. Assuming an ordinary tax rate of 35%, 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: The firm pays $12.000 in interest. The firm pays $12.000 in preferred stock dividends

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