Effect of Financing on Earnings per Share

Domanico Co., which produces and sells biking equipment, is financed as follows:

Bonds payable, 10% (issued at face amount)	$2,150,000
Preferred $2 stock, $20 par	2,150,000
Common stock, $25 par	2,150,000

Income tax is estimated at 40% of income.

Determine the earnings per share on common stock, assuming that the income before bond interest and income tax is (a) $924,500, (b) $1,139,500, and (c) $1,354,500.

Enter answers in dollars and cents, rounding to two decimal places.

a. Earnings per share on common stock $_____

b. Earnings per share on common stock $_____

c. Earnings per share on common stock $_____