2.

BSF Co, which produces and sells skiing equipment, is financed as follows: Income tax is estimated at 60% of income. Round your answers to the nearest cent. a. Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is $170,000. per share b. Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is $220,000. $ per share c. Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is $270,000. + per share Several months ago, Cinnabar Chemical Company experienced a hazardous materials spill at one of its plants, As a result, the Environmental Protection Agency (EPA) fined the co homeowner has sued the company for $292,000. The homeowner lives 15 miles from the plant but believes that the incident has reduced the home's resale value by $292,000. Cinnabar's legal counsel believes that it is probable that the EPA fine will stand. In litigation related to the spill is possible, but the damage amounts are uncertain. a. Illustrate amounts. Financial Statement Effects