Alternative Financing Plans

Desmond Co$.$ is considering the following alternative financing plans:

Income tax is estimated at $40\%$ of income.

Determine the earnings per share of common stock, assuming that income before bond interest and income tax is $$504,000.$

Enter answers in dollars and cents, rounding to two decimal places.

Plan $1$

Earnings per share on common stock

Plan $2$

Earnings per share on common stock

Feedback

Check My Work

Set up a column for each plan. Remember to take interest, income tax and dividends into consideration.