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Effect of Financing on Earnings Per Share Three different plans for financing an $2,700,000 corporation are under consideration by its face amount, and the income

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Effect of Financing on Earnings Per Share Three different plans for financing an $2,700,000 corporation are under consideration by its face amount, and the income tax rate is estimated at 40% of income: organizers. Under each of the following plans, the securities will be issued at their par or Plan 1 Plan 2 Plan 3 10% bonds Preferred 10% stock, $40 par Common stock, $2.7 par $1,350,000 675,000 675,000 $2,700,000 $2,700,000 2,700,000 $1,350,000 $2,700,000 1,350,000 Total Required: 1. Determine the earnings per share of common stock for each plan, assuming that the income before bond interest and income tax is $5,400,000. Enter answers in dollars and cents, rounding to the nearest cent. Earnings Per Share on Common Stock Plan 1 Plan 2 Plan 3 2. Determine the eamings per share of common stock for each plan, assuming that the income before bond interest and income tax is $2,565,000. Enter answers in dollars and cents, rounding to the nearest cent. Earnings Per Share on Common Stock Plan 1 Check My Work Previous 12-17 AM 12/7/2018 ,700,000 $2,700,000 $2,700,000 Required: 1. Determine the earnings per share of common stock for each plan, assuming that the income before bond interest and income tax is $5,400,000. Enter answers in dollara cents, rounding to the nearest cent. Earnings Per Share on Common Stock Plan 1 Plan 2 Plan 3 e the earnings per share of common stock for each plan, assuming that the income before bond interest and income tax is $2 cents, rounding to the nearest cent. Earnings Per Share on Common Stock Plan 1 Plan 2 Plan 3 3. The principal payment of preferred dividends of Plan 1 is that it involves only the issuance of common stock, which does not require a periodic interest payment or return of principal, and a required Check My Work Previous for Greding 1217 AM

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