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Interest versus dividend expense Michaels Corporation expects earnings before interest and taxes to be $54,000 for the current period. Assurning a fiat ordinary tax rate ol 22%, 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 $12.400 in interest. b. The firm pays $12,400 in preferred stock dividends. a. Complete the fragment of Michaels Corporation's income statement below to computo the firm's earnings after taxes and earnings available for common stockholders under condition (a). (Round to the nearest dollar) S $ EBIT Loss Interest expenso Earnings before taxes Loss Taxes (22%) Earnings after taxes Less: Preferred dividends Interest versus dividend expense Michaels Corporation expects earnings before interest and taxes to be $54,000 for the current period. Assuming a flat ordinary tax rate of 22%, compute the firm's eamings after taxes and earnings available for common stockholders (eamings after taxes and preferred stock dividends, if any) under the following conditions: a. The firm pays $12.400 in interest b. The firm pays $12,400 in proforrod stock dividends. stockholders under condition (a), (Round to the nearest dollar) EBIT Loss: Interest expenso Earnings before taxes Loss: Taxes (22%) Earnings after taxes Loss: Proferred dividends S S $ Earnings available for common stockholders S

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