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Billco Corporation expects earnings before interest and taxes to be $450,000 for the current tax year....

Billco Corporation expects earnings before interest and taxes to be $450,000 for the current tax year. Using the U.S. corporate flat tax rate of 21%, compute the Billco’s earnings available for common stockholders if the firm pays $25,000 in interest versus $25,000 in preferred stock dividends.

  

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