Determine the earnings ler share of common stock, assuming that income before bond interest and income tax is $400,000

eBook Show Me How Calculator Print item Alternative Financing Plans Desmond Co. is considering the following alternative financing plans: Plan 1 Plan 2 $3,000,000 $1,000,000 Issue 5% bonds (at face value) Issue preferred $1 stock, $20 par Issue common stock, $10 par 3,000,000 2,000,000 3,000,000 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 $400,000. 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 Feed Check My W Set up a column for each plan. Remember to take interest, income tax and dividends into consideration