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$)$

$$200,000$

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

$200,000$

Common stock, $$25$ par

$200,000$

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$)$ $$98,000,($b$)$ $$118,000,$ and $($c$)$ $$138,000.$

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 &