Jenson Co. is considering the following alternative plans for financing the company:

Plan 1 Plan 2 Issue

Issue 10% bonds (at face) $2,000,000

Issue $10 common stock $3,000,00 $1,000,000

Income tax is estimated at 40% of income.

Determine the earnings per share of common stock under the two alternative financing plans, assuming income before bond interest and income tax is $1,000,000. Round your answers to two decimal places.

Earnings per Share on Common Stock

Plan 1 $

Plan 2 $