Plan 1	_______$ Earnings per share on common stock
Plan 2	_______$ Earnings per share on common stock

Alternative Financing Plans Folmar Co. is considering the following alternative financing plans: Plan 1 Plan 2 Issue 10% bonds (at face value) Issue preferred $1 stock, $10 par Issue common stock, $5 par $1,280,000 640,000 1,060,000 860,000 1,280,000 Income tax is estimated at 40% of income Determine the earnings per share on common stock, assuming income before bond interest and income tax is $896,000. Enter answers in dollars and cents, rounding to the nearest cent