Anders Co., which produces and sells skiing equipment, is financed as follows:
Bonds payable, 8% (issued at principal amount)...................$10,000,000
Common shares, 400,000 issued and outstanding..................10,000,000
Income taxes are estimated at 30% of income.
Determine the earnings per share, assuming that the income before bond interest and income taxes is
(a) $1,000,000,
(b) $2,000,000,
(c) $3,000,000.