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Longview Products Company (LPC) expects earnings before interest and taxes of $575,000 for this year. Under the 2018 tax law, LPC is subject to a

Longview Products Company (LPC) expects earnings before interest and taxes of $575,000 for this year. Under the 2018 tax law, LPC is subject to a 21% flat tax. Compute the firms earnings after taxes and earnings available for common stockholders (earnings after taxes and preferred stock dividends, if any) under the following scenarios:

a. LPC pays $100,000 in interest expense.

b. LPC pays $100,000 in preferred stock dividends

Show formulas. Use Excel

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