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Interest versus diyidend expense Michaels Corporation expects earnings before interest and taxes to be $ 5 0 , 0 0 0 for the current period.
Interest versus diyidend expense Michaels Corporation expects earnings before interest and taxes to be $ for the current period. Assuming a flat ordinary tax rate of 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 $ in interest.
b The firm pays $ in preferred stock dividends.
a Complete the fragment of Michaels Corporation's income statement below to compute the firm's earnings after taxes and earnings available for common stockholders under condition aRound to the nearest dollar.
EBIT
Less: Interest expense
Earnings before taxes
Less: Taxes
Earnings after taxes
Less: Preferred dividends
Earnings available for common stockholders
$
$
$
$
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