1. EX.14-01.ALGO (Algorithmic Effect of Financing on Earnings per Share Domanico Co., which produces and sells biking equipment, is financed as follows: Bonds payable, 10% (issued at face amourt) $1,750,000 Preferred Common stock, $25 par stock, $20 par 1,750,000 1,750,000 Income tax is estimated at 40% of income. Determine the earnings per share on common stock, assuming that the income before bond interest and income tax is (a) $700,000, (b) $875,000, and (c) $1,050,000. Enter answers in dollars and cents, rounding to the nearest cent. a. Earnings per share on common stock $ b. Earnings per share on common stock f c. Earnings per share on common stock 2. Ex.14-02 Evaluate Alternative Financing Plans Domanico Co., which produces and sells biking equipment, is financed as follows: Bonds payable, 6% (issued at face amount) $5,000,000 Preferred $2.00 stock, $100 par Common stock, $25 par 5,000,000 5,000,000 Income tax is estimated at 40% of income. What factors other than earnings per share should be considered in evaluating alternative financing plans? a. Bonds represent a fixed annual interest requirement, while dividends on stock do not. b. Dividends reduce retained earnings. c. Bond holders exercise control over board of directors decisions. d. Stock must be paid annual dividends. e. Net income is reduced by dividend expense. 3. EX.14-08.ALGO (Algorithmic) Entries for Issuing and Calling Bonds; Loss