Alternative Financing Plans

Desmond Co. is considering the following alternative financing plans:

	Plan 1		Plan 2
Issue 10% bonds (at face value)	$920,000		$460,000
Issue preferred $1 stock, $10 par			760,000
Issue common stock, $5 par	920,000		620,000

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 $276,000.

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

Plan 1	$fill in the blank 1 Earnings per share on common stock
Plan 2	$fill in the blank 2 Earnings per share on common stock