1. Assume an investor is in the 28 percent tax bracket. Other things equal, after taxes are paid, would this investor prefer a corporate bond paying 8.4 percent or a municipal bond paying 6 percent?
2. Sammy's Shovels had sales of $ 88465 in 2010. The cost of goods sold was $ 28072 , operating expenses (excluding depreciation) were $ 19655 , interest expenses were $ 2633 , depreciation expense was $ 6186 , and dividends paid were $ 2867 . The firm's tax rate is 25 percent. What did Sammy's Shovels report as net income (or, net profit) in 2010?