Question
Last year Phoenix Corp. had an operating profit of $600,000 and paid $50,000 in interest expenses. The applicable income tax rate for the year
Last year Phoenix Corp. had an operating profit of $600,000 and paid $50,000 in interest expenses. The applicable income tax rate for the year was 25 percent. The company had 100,000 shares of common stock outstanding at the end of last year. If the company paid $1.00 per share to its common stockholders, what was the addition to retained earnings last year?
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