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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
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) | $2,000,000 |
Preferred $2 stock, $20 par | 2,000,000 |
Common stock, $25 par | 2,000,000 |
Income tax is estimated at 40% of income.
Determine theearnings per share on common stock, assuming that the income beforebondinterest and income tax is (a) $960,000, (b) $1,160,000, and (c) $1,360,000.
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 $
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