Is there a way for me to share a screen shot? The table formatting falls off with this question, so it is probably quite hard to follow.

Thanks!

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:

Plan 1

Plan 2

Plan 3

10% bonds__$4,050,000

Preferred 10% stock, $40 par_$4,050,0002,025,000

Common stock, $8.1 par$8,100,0004,050,0002,025,000

Total$ 8,100,000$ 8,100,000$ 8,100,000

Required:

1.Determine the earnings per share of common stock for each plan, assuming that the income beforebondinterest and income tax is $16,200,000. Enter answers in dollars and cents, rounding to the nearest cent.

Earnings Per Share on Common StockPlan 1$Plan 2$Plan 3$

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 the nearest cent.

Earnings Per Share on Common StockPlan 1$Plan 2$Plan 3$

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 principal, and a payment of preferred dividends

required.