2. At the end of the year the Long Life Bulb Company announced that it had produced a gross profit of $1000000. The company has also established that over
the course of this year it has incurred $345000 in operating expenses and $125000 in interest expenses. The company is subject to a 30% tax rate and has
declared $57000 total preferred stock dividends.
a. How much is the earnings available for common stockholders?
(insert answer here)
b. Compute the increased retained earnings for 2003 if the company were to declare a $4.25 common stock dividend. The company has 15000 shares of common stock