OLIVE Desmond Co. is considering the following alternative financing plans: Plan 2 anch Issue 10% bonds (at face value) Issue preferred $1 stock, $10 par N Issue common stock, $5 par Income tax is estimated at 40% of income. Plan 1 Plan 2 Plan 1 $1,400,000 *********** 1,400,000 Determine the earnings per share of common stock, assuming that income before bond interest and income tax is $420,000. Enter answers in dollars and cents, rounding to two decimal places. Earnings per share on common stock Earnings per share on common stock $700,000 1,160,000 940,000

Desmond Co. is considering the following alternative financing plans: Income tax is estimated at 40% of income. Determine the earnings per share of common stock, assuming that income before bond interest and income tax is $420,000 Enter answers in dollars and cents, rounding to two decimal places. Plan 1 Earnings per share on common stock Plan 2 Earnings per share on common stock