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12. Ulmer Company is considering the following alternative financing plans: Plan 2 $1,000,000 1,500,000 1,500,000 Plan 1 Issue 8% bonds at face value $2,000,000 Issue preferred stock, $15 par Issue common stock, $10 par 2,000,000 Income tax is estimated at 35 % of income. Dividends of $1 per share were declared and paid on the preferred stock. Determine the earnings per share of common stock, assuming income before bond interest and income tax is $600,000. Plan 2 Plan 1 Eamings before bond interest and income tax Bond interest Balance Income tax Net income Dividends on preferred stock Earnings available for common stock Number of common shares Earnings per share on common stock