Multiple Choice
A corporation has $10,000,000 in 10 percent preferred stock outstanding and a 40 percent tax rate.The amount of earnings before interest and taxes (EBIT) required to pay the preferred dividends is_________.
A) $1,000,000
B) $600,000
C) $400,000
D) $1,666,667
Correct Answer:
Verified
Correct Answer:
Verified
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