eBook Effect of Financing on Earnings Per Share Three different plans for financing a $5,200,000 corporation are under consideration by its organizers. Under each of the following plans, the securities will be issued at their par or face amount, and the income tax rate is estimated at 10% of income. Plan 1 Plan 2 Plan 3 10% bonds $2,600,000 Preferred 10% stock, $100 par $2,600,000 1,300,000 Common stock, $4 par $5,200,000 2,600,000 1,300,000 Total $5,200,000 $5,200,000 $5,200,000 Round the answers to nearest cent. Instructions: 1. Determine for each plan the earnings per share of common stock, assuming that the income before bond Interest and income tax is $1,300,000 Earnings per share of common stock Plan per share Plan 2 per share Plan per share 2. Determine for each plan the earnings per share of common stock, assuming that the income before bond Interest and income tax is $845,000 Previous NO Check My Work 10 more Chudu My Work uses remaining 2. Determine for each plan the earnings per share of common stock, assuming that the income before bond interest and income tax is $845,000. Earnings per share of common stock Plan 1 per share Plan 2 per share Plan 3 per share 3. Complete the tables below regarding advantages and disadvantages of each plan. Plan 1 The advantage of Plan 1 is that The disadvantage is that its EPS 15 Plan 2 The advantage of Plan 2 is that The disadvantage is that its EPS is Plan 3 The advantage of Plan 3 is that The disadvantage is that its EPS is Previous Ched My Work 10 mote Check My Work uses remaining Submers for ad