Effect of Financing on Earnings per Share

Miller Co., which produces and sells skiing equipment, is financed as follows:

Bonds payable, 10% (issued at face amount)	$1,400,000
Preferred $2 stock, $20 par	1,400,000
Common stock, $25 par	1,400,000

Income tax is estimated at 40% of income.

Determine the The profitability ratio of net income available to common shareholders to the number of common shares outstanding.earnings per share on common stock, assuming that the income before A form of an interest-bearing note used by corporations to borrow on a long-term basis.bond interest and income tax is (a) $420,000, (b) $560,000, and (c) $700,000.

Enter answers in dollars and cents, rounding to the nearest cent.

a. Earnings per share on common stock $

b. Earnings per share on common stock $

c. Earnings per share on common stock $