The Coronach Corporation recently paid $1,800,000 in dividends and $1,600,000 in interest expense. For the year just ended the addition to retained earnings was $2,100,000 and net new equity was $851,870. The tax rate is 32 percent. Sales are $17,125,000 and depreciation is $8,555,600. A. What are the earnings before interest and 68 taxes? B. Calculate the interest tax shield for the year. 69 70 71 72 73 5

4. The Coronach Corporation recently paid $1,800,000 in dividends and $1,600,000 in interest expense. For the year just ended the add tion to retained earnings was $2,100,000 and net new equity was $851.870. The tax rate is 32 percent. Sales are $17,125,000 and depreciation is $8,555,600. A . What are the earnings before interest and taxes? a. Cakculate the interest tas shield for the year