Bliss Co., which produces and sells skiing equipment, is financed as follows:
Bonds payable, 6% (issued at face amount) ...... $4,000,000
Preferred $2 stock (nonparticipating), $25 par ..... 4,000,000
Common stock, $20 par .............. 4,000,000
Income tax is estimated at 40% of income.
Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is
(a) $1,000,000,
(b) $1,800,000,
(c) $3,200,000.