Jardon Co. is considering the following alternative financing plans:

Plan 1 Plan 2

Issue 6% bonds (at face value) $6,000,000 $5,000,000

Issue preferred $3.00 stock, $30 par 0 $3,000,000

Issue common stock, $10 par $6,000,000 $4,000,000

Income tax is 40% of income.Determine the earnings per share of common stock, assuming income before bond interest and income tax is $1,200,000.