1. cold goose is able to achieve this level of increased sales, but its interest costs increase from 10% to 15% of earnings before interest and taxes (ebit). 2. the company’s operating costs (excluding depreciation and amortization) remain at 75% of net sales, and its depreciation and amortization expenses remain constant from year to year. 3. the company’s tax rate remains constant at 25% of its pre-tax income or earnings before taxes (ebt). 4. in year 2, cold goose expects to pay $300,000 and $1,172,601 of preferred and common stock dividends, respectively.