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Domanico Co., which produces and sells biking equipment, is financed as follows: Bonds payable, 10% (issued at face amount) $550,000 Preferred $2 stock, $20 par
Domanico Co., which produces and sells biking equipment, is financed as follows:
Bonds payable, 10% (issued at face amount) | $550,000 |
Preferred $2 stock, $20 par | 550,000 |
Common stock, $25 par | 550,000 |
Income tax is estimated at 40% of income.
Determine the earnings per share on common stock, assuming that the income before bond interest and income tax is (a) $176,000, (b) $231,000, and (c) $286,000.
Enter answers in dollars and cents, rounding to two decimal places.
a. Earnings per share on common stock $
b. Earnings per share on common stock $
c. Earnings per share on common stock $
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