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    Earnings available for common stockholders

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    At the end 2005, the Long Life Light Bulb Company announced had produced a gross profit of $1 million. The company has also established that over the course of this year it has incurred $345,000 in operating expenses and $125,000 interest expenses. The company is subject to a 30 percent tax rate and has declared $57,000 total preferred stock dividends.

    a)How much is the earnings available for common stockholders?

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    At the end 2005, the Long Life Light Bulb Company announced had produced a gross profit of $1 million.  The company has also established that over the course of this year it has incurred $345,000 in operating expenses and ...

    Solution Summary

    Calculates the earnings available for common stockholders.

    $2.19

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