Business, 11.02.2020 02:01 baileyedavis

Interest versus dividend expense Michaels Corporation expects earnings before interest and taxes to be $ 50 comma 000 for the current period. Assuming a flat ordinary tax rate of 21 %, 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 $ 12 comma 000 in interest. b. The firm pays $ 12 comma 000 in preferred stock dividends.

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