Alternative Financing Plans Folmar Co. is considering the following alternative financing plans: Plan 1 Plan 2 Issue 10% bonds (at face value) Issue preferred $1 stock, $10 par Issue common stock, $5 par Income tax is estimated at 40% of income. Determine the earnings per share on common stock, assuming income before bond interest and income tax is $1,056,000. Enter answers in dollars and cents, rounding to the nearest cent. Plan 1 Plan 2 $1,760,000 $880,000 1,460,000 1,760,000 1,180,000 x Earnings per share on common stock x 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. Learning Objective 1