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Michaels Corporation expects earnings before interest and taxes to be $52,000 for this period. Assuming an ordinary tax rate of 40% compute the firm's earnings
Michaels Corporation expects earnings before interest and taxes to be $52,000 for this period. Assuming an ordinary tax rate of 40% 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 $11, 300 in interest b. The firm pays $11, 300 in preferred slack dividends a. Complete the fragment of Michaels Corporation's income statement below compute the firm's earnings after taxes and earnings available for common stockholders under condition (a). (Round to the nearest dollar.) EBIT $ Less: Interest expense Earnings before taxes $ Less: Taxes (40%) Earnings after taxes $ Less: Preferred dividends Earnings available for common stockholders $ b. Complete the fragment of Michaels Corporation's income statement below to compute the firm's earrings after taxes and earnings available for common stockholders under conation (b). (Round to the nearest dollar.) EBIT $ Less: interest expense $ Earnings before taxes $ Less Taxes (40%) Earnings after taxes $ Less Preferred dividends Earnings available for common stockholders $
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