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) $2,500,000 Preferred 2% stock, $20 par 2,500,000 Common stock, $25 par 2,500,000 Income tax is estimated at 60% of income. Round your answers to the nearest cent.

Chapter 8 Homework eBook Calculator 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) $2,500,000 Preferred 2% stock, $20 par 2,500,000 Common stock, $25 par 2,500,000 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 $800,000. per share b. Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is $1,050,000. per share c. Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is $1,300,000. per share