Compute the firm earnings after taxes and earnings

Assignment Help Finance Basics
Reference no: EM1360507

Michaels Corporation expects earnings before interest and taxes to be $40,000 for this period. Assuming an ordinary tax rate of 40 percent, 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 $10,000 in interest.
b. The firm pays $10,000 in preferred stock dividends.

Reference no: EM1360507

Questions Cloud

What is marginal benefits and marginal costs : After paying the movie distributors and meeting all other noninterest expenses, the owner expects to net $2 per ticket sold. Construction costs are $1,000,000 per screen. What is marginal benefits and marginal costs.
Research conducted in online learning environments : Research Conducted in Online Learning Environments - Suppose you are researching the students in an online class. What can you measure? How?
Explain defend your assertions using properly cited : Explain Defend your assertions using properly cited information from course readings and other course work.
Maslow hierarchy of needs : How does Maslow's Hierarchy of Needs affect an individual empowerment of themselves?
Compute the firm earnings after taxes and earnings : Michaels Company expects earnings before interest and taxes to be $40,000 for this period. Assuming an ordinary tax rate of 40%, compute the firm's earnings after taxes and earnings available for common stockholders
Business in russia and czech republic : The corruption risk is at the local level but once you are in Russia, you are in. Russia's business ethics is very hard to understand.
Write program to read ten numbers-display distinct numbers : Write a program that reads in ten numbers and displays distinct numbers (i.e., if a number appears multiple times, it is displayed only once).
Make use of the work-energy theorem : A major-league catcher gloves a 92 {rm mi}/{rm h} pitch and brings it to rest in 0.15 {rm m}.If the force exerted by the catcher is 803 {rm N}, what is the mass of ball.
Challenge of scholarly writing : What are some of the areas related to writing that still concern you? What challenges do you foresee in your becoming skillful as a scholarly writer?

Reviews

Write a Review

Finance Basics Questions & Answers

  Collaborates with a finance company

T he benefits of collaboration between the large retailer and the finance company.

  Calculate current and expected stock price

The Jackson-Timberlake Wardrobe Corporation just paid a dividend of $1.60 per share on its stock. The dividends are expected to rise at a constant rate of 6 percent per year indefinitely.

  Computing project''s npv

Computing Project's NPV of Swannee Resorts is considering a new project whose data are shown below

  Mergers-shareholder value for bentley and rolls

Bentley Corp. and Rolls Manfacturing are considering a merger. The possible states of the economy and each company's value are below: What is the value of each company before the merger? What are the values of each companys debt and equity before th..

  Determine which ratios measures organization liquidity

Determine which of the following ratios measures an organization's liquidity also find which of the following ratios would tell an investor about the profitability of the organization?

  Cost allocation using direct method

Cost allocation using Direct method allocate costs to the mission centers using the direct distribution method

  Describes common stock or preferred stock

Classification of preferred stock and common stock and check whether the characteristic listed below describes common stock (CS) or preferred stock (PS).

  Determining if it project supports goals and objectives

An organization had a history of making regular investments in IT acquisition projects. It consistently spent more on IT acquisitions than its competitors but seemed to gain no advantage from doing so.

  Assess a job candidates honesty

Integrity, especially honesty, is trait number one for being employed as a CFO in corporate America today. How might you assess a job candidate's honesty if interviewing a potential CFO candidate?

  Determine the value of the erosion

A Corporation currently sells 300 Class A spas, 450 Class C Spas and 200 deluxe model spas each year. The company is planning adding a mid class spa and expects that if it does it can sell 375 of them.

  Computation of net present value

Computation of Net present Value of the project and the decision making and what is the meaning of the computed net present value figure

  Computing compound interest and annuity

As a financial planner a customer comes to you for investment advice. After meeting with him and understanding his requirements, you offer him the following two investment options:

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd