Effect of Financing on Earnings per Share

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

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

$$750,000$

$750,000$

$750,000$

Preferred $$2$ stock, $$20$ par

Common stock, $$25$ par

Income tax is estimated at $40\%$ of income.

Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is $($a$)$ $$277,500,($b$)$ $$352,500,$ and $($c$)$

$$427,500.$

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 $

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Set up a column for each plan. Remember to take interest, income tax and dividends into consideration.