1. This year, ABC corp. expects to earn an operating profit of 32,200,000. ABC expects to earn enough net income to pay its shareholders a dividend of 2,600,000 and add 5,200,000 to its retained earnings. Given its tax rate of 40 percent, what is this firm's expected interest expense for the year?
2. Why do you think Spotify is paying so much less than Snap did when it went public last year & why would Spotify go public if it is "cash-rich"? (Please answer in 200 words)