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)$1,950,000Preferred $1 stock, $10 par1,950,000Common stock, $25 par1,950,000

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) $858,000, (b) $1,053,000, and (c) $1,248,000.

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

a. Earnings per share on common stock $fill in the blank 1

b. Earnings per share on common stock $fill in the blank 2

c. Earnings per share on common stock $fill in the blank 3