IDNLearn.com is your go-to resource for finding expert answers and community support. Get the information you need from our community of experts who provide accurate and comprehensive answers to all your questions.
Sagot :
Profit for common stockholders after payment of interest and corporate taxes is $5,45,100
Gross profit = $790,000
Interest = Debt x Rate of interest
Interest = $1,000,000 x 10% = $1,00,000
Tax rate = 21% or 0.21
Profit to common stockholder = (Gross profit - Interest) x (1 - Tax rate)
Profit to common stockholder = ($790,000 - $1,00,000) x (1 - 0.21)
Profit to common stockholder = $6,90,000 x 0.79
Profit to common stockholder = $5,45,100
The profit that remains at the conclusion of an accounting period for a corporation after paying all expenses and dividends to preferred stockholders is known as "earnings available for common stockholders."
This metric, along with a company's earnings per share are important to common stockholders since they indicate their part of the profits. The value of your small business's common stock may rise if it produces significant earnings available to common stockholders.
To learn more about common stockholders, please refer:
https://brainly.com/question/15719511
#SPJ4
Thank you for using this platform to share and learn. Don't hesitate to keep asking and answering. We value every contribution you make. IDNLearn.com is committed to providing accurate answers. Thanks for stopping by, and see you next time for more solutions.
