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The company projects the following for the upcoming year: Earnings before interest and taxes 40,000,000 Interest expense 5,000,000 Preferred stock dividends 4,000,000 Common stock dividend

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The company projects the following for the upcoming year: Earnings before interest and taxes 40,000,000 Interest expense 5,000,000 Preferred stock dividends 4,000,000 Common stock dividend pay-out ratio 20% Average number of common shares outstanding 2,000,000 Effective corporate income tax rate 40%

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