Folmar Co. is considering the following alternative financing plans:

Plan 1 Plan 2

Issue 10% bonds (at face value) $1,040,000 $520,000

Issue preferred $1 stock, $10 par 860,000

Issue common stock, $5 par 1,040,000 700,000

Income tax is estimated at 40% of income.

Determine the earnings per share on common stock, assuming income before bond interest and income tax is $624,000.

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

Plan 1 $ Earnings per share on common stock

Plan 2 $ Earnings per share on common stock