Which of the following best represents the stream of income that is available to common stockholders?
a. gross profit
b. net profit after tax and after preferred dividend payments
c. earnings before interest and taxes
d. operating profit

Suppose a holiday inn hotel has annual fixed costs applicable to its rooms of $1.2 million for its 300-room hotel, average daily room rents of $50, and average variable costs of $10 for each room rented. it operates 365 days per year. the amount of operating income on rooms, assuming an occupancy* rate of 80% for the year, that will be generated for the entire year is *occupancy = % of rooms rented