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) $1,250,000 Preferred 2% stock, $20 par 1,250,000 Common stock, $25 par 1,250,000 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 $412,500. $ per share
b. Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is $537,500. $ per share
c. Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is $662,500. $ per share
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