Smashed pumpkins co. paid $200 in dividends and $624 in interest over the past year. the company increased retained earnings by $522 and had accounts payable of $690. sales for the year were $16,545 and depreciation was $752. the tax rate was 38 percent. what was the company's ebit?

Aggart technologies is considering issuing new common stock and using the proceeds to reduce its outstanding debt. the stock issue would have no effect on total assets, the interest rate taggart pays, ebit, or the tax rate. which of the following is likely to occur if the company goes ahead with the stock issue? a. the roa will decline.b. taxable income will decline.c. the tax bill will increase.d. net income will decrease.e. the times-interest-earned ratio will decrease