Michaels Corporation expects earnings before interest and taxes to be $44,000 for the current period....
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Michaels Corporation expects earnings before interest and taxes to be $44,000 for the current period. Assuming a flat ordinary tax rate of 23%, 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 $ 11 comma 900$11,900 in interest.
b. The firm pays $ 11 comma 900$11,900 in preferred stock dividends.
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