Effect of Financing on Earnings Per Share

BSF Co$.,$ which produces and sells skiing equipment, is financed as follows:

Bonds payable, $10\%($issued at face amount$)$

$$2,000,000$

Preferred $1\%$ stock, $$10$ par

$2,000,000$

Common stock, $$25$ par

$2,000,000$

Income tax is estimated at $60\%$ of income.

Round your answers to the nearest cent.

a$.$ Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is $$640,000.$ X per share

b$.$ Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is $$840,000.$ X per share

c$.$ Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is $$1,040,000.$

$

per share