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Company X has financing of $5,000,000 of 9% bonds payable, issued at face value. It also has $20 par common stock (150,000 shares) issued for
Company X has financing of $5,000,000 of 9% bonds payable, issued at face value. It also has $20 par common stock (150,000 shares) issued for a total of $3,000,000. Company Y has financing of $3,000,000 of 9% bonds payable, issued at face value. It also has $20 par common stock ( 150,000 shares) issued for a total of $3,000,000. Income tax is at a 40% rate. Assuming income before bond interest and income taxes is $1,500,000. What is the earnings per share for Company X? Format your answer in this format $0.00
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