Michaels corporation expects earnings before interest and taxes to be 42,000 for this period. assuiming an extraordinary tax rate of 35% compute the firm's earning after taces and earnings available for common stockholders under the following conditions: a) the firm pays 12,100 in interest

b) the firm pays 12,100 in preferred stock dividends (ROUND TO THE NEAREST DOLLAR)

EBIT

Less interest expense

earnings before taxes

less taxes 35%

earnings after taxes

less preffered dividends

earnings available for common stockholders