Effect of Financing onEarnings Per Share

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

Bonds payable, 10% (issued at face amount)$1,750,000Preferred 2% stock, $20 par1,750,000Common stock, $25 par1,750,000

Income tax is estimated at 60% of income.

Round your answers to the nearest cent.

a.Determine the earnings per share ofcommon stock, assuming that the income beforebondinterest and income tax is $770,000.

$per share

b.Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is $945,000.

$per share

c.Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is $1,120,000.

$per share