Question
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
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) | $350,000 |
Preferred 2% stock, $20 par | 350,000 |
Common stock, $25 par | 350,000 |
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 $161,000. $fill in the blank 1 per share
b. Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is $196,000. $fill in the blank 2 per share
c. Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is $231,000. $fill in the blank 3 per share
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