Effect of Financing on Earnings Per Share Three different plans for financing an $8,100,000 corporation are under consideration by its organizers. Under each of the following plans, the securities will be issued at their par or face amount, and the income tax rate is estimated at 40% of income: 1. Determine the earnings per share of common stock for each plan, assuming that the income before bond interest and income tax is $16,200,000. Enter answers in dollars and cents, rounding to two decimal places. 2. Determine the earnings per share of common stock for each plan, assuming that the income before bond interest and income tax is $7,695,000. Enter answers in dollars and cents, rounding to two decimal places. 3. The principal of Plan 1 is that it involves only the issuance of common stock, which does not require a periodic interest payment or return of orincipal, and a payment of preferred dividends required. Feedback Check My Work Set up a column for each plan. Remember to take interest, income tax and dividends into consideration. firm must pay even during periods of earnings declines