Book Name: Principles of Managerial Finance - 180 Day Option,14th Edition
Lawrence J. Gitman
P2–5 Interest versus dividendexpense   Michaels Corporation expectsearnings before interest and taxes to be $50,000 for the currentperiod. Assuming an ordinary tax rate of 35%, compute the firm’searnings after taxes and earnings available for common stockholders(earnings after taxes and preferred stock dividends, if any) underthe following conditions:
- The firm pays $12,000 in interest.
- The firm pays $12,000 in preferred stock dividends.
Please provide me with a detailed calculation for my studypurpose thank you!
