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Sorenson Co., Is considering the following altermative plans for financing the company: Plan 1 Plan 2 Issue 10% Bonds (at face) Issue $10 par Common

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Sorenson Co., Is considering the following altermative plans for financing the company: Plan 1 Plan 2 Issue 10% Bonds (at face) Issue $10 par Common Stock Income tax is estimated at 40% of income. $40,000 $60,000 $20,000 Determine the earnings per share of common stock under the two alternative financing plans, assuming income before bond interest answers to two decimal places Plan 1 Plan 2 and income tax is $15,000. Round your

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