Smith Co. is considering the following alternative plans for financing the company: Plan I Plan II Issue 10% bonds (at face) - $1,000,000 Issue common stock, $10 par $3,000,000 2,000,000 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. Plan I Plan II

Smith Co. is considering the following alternative plans for financing the company: 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. Plan I $ Plan II $