lue Hamster Manufacturing Inc.'s income statement reports data for its first year of operation. The firm's CEO would like sales to increase by 25% next ear. Blue Hamster is able to achieve this level of increased sales, but its interest costs increase from 10% to 15% of earnings before interest and taxes (EBIT) 1, 2. The company's operating costs excluding depreciation and amortization remain at 60% of net sales, and its depreciation and amortization expenses remain constant from year to year. 3, The company's tax rate remains constant at 40% of its pre-tax income or earnings before taxes (EBT). 4. In Year 2, Blue Hamster expects to pay $100,000 and $1,876,800 of preferred and common stock dividends, respectively omplete the Year 2 income statement data for Blue Hamster, then answer the questions that follow. Be sure to round each dollar value to the nearest whole dollar Blue Hamster Manufacturing Inc. Income Statement for Year Ending December 31 Year 2 (Forecasted) Year 1 Net sales $20,000,000 12,000,000 800,000 $7,200,000 720,000 6,480,000 2,592,000 $3,888,000 100,000 3,788,000 1,555,200 $2,232,800 $25,000,000 Less: Operating costs, except depreciation and amortization Less: Depreciation and amortization expenses Less: Interest expense Less: Taxes (40%) Less: Preferred stock dividends 800,000 Operating income (or EBIT Pre-tax income (or EBT) Earnings after taxes Earnings available to common shareholders Contribution to retained earnings Less: Common stock dividends $2,715,200 Given the results of the previous income statement calculations, complete the following statements: In Year 2, if Blue Hamster has 5,000 shares of preferred stock issued and outstanding, then each preferred share should expect to receive . in annual dividends. If Blue Hamster has 400,000 shares of common stock issued and outstanding, then the firm's earnings per share (EPS) is expected to change