What is the net income for the firm if the firm pays a 20


A firm has EBIT of $926,400.00. Assume that the firm will pay $253,250.00 in interest in the upcoming year. The firm has a corporate tax rate of 35.00%. The firm has 129,000.00 common shares outstanding.

a) What is the net income for the firm?

b) If the firm pays a 20% dividend, what are the dividends per share?

c) If the firm pays a 20% dividend, how much is added to retained earnings?

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Financial Management: What is the net income for the firm if the firm pays a 20
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