Earnings after Tax
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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.
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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.
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