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Earnings after Tax

Ag Silver mining,Inc.has$500,000 of earnings before interest and taxes at the year end. Interest expenses for the year were $10,000. The firm expects to distribute $100,000 in dividends. Calculate the earnings after taxes for the firm assuring a 40 percent tax on ordinary income.

Solution Summary

The solution provides step by step method for the calculation of earnings after taxes given earnings before interest and taxes, interest expenses and tax percentage.