Alternative Financing Plans Desmond Co. is considering the following alternative financing plans: Plan 1 Issue 10% bonds (at face value) $840,000 Issue preferred $1 stock, $10 par - Issue common stock, $5 par 840,000 Income tax is estimated at 40% of income. Plan 2 $420,000 700,000 560,000 12 Determine the earnings per share of common stock, assuming that income before bond interest and income tax is $420,000. Enter answers in dollars and cents, rounding to two decimal places. Plan 1 1.80 X Earnings per share on common stock Plan 2 0.52 X Earnings per share on common stock