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  • 工作学习 / English / 请教大家,1。preferred stock 和common stock是不是分别译为优先股和普通股?这两者到底有何区别??
    2。Criss-cross industries has earning s before interest and taxes of $10million.Interest payments are $2million and the corporate tax rate is 35%.Construct a simple incomes statement to show that the debt interest reduces the taxes the firm owes to the government .How much more tax would Criss-cross pay if it were financed solely by equity?这道题答案是0。7million吗?盼告知!!不胜感激!!
    • 1、Preferred shares have the priority on dividends payment to common shares; and common shareholders have voting rights that preferred shareholders do not usally have.
      2、Tax deduction = $2,000,000*35%=$700,000
      • Thank you very much!!