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Sorenson Co., is considering the following alternative plans for financing their company: Plan I Plan II Issue 10% Bonds (at force) - $100,000 Issue $10
Sorenson Co., is considering the following alternative plans for financing their company: Plan I Plan II Issue 10% Bonds (at force) - $100,000 Issue $10 par Common Stock $150,000 $50,000 Income tax is estimated at 40% of income. Determine the estimating per share of common stock under the two alternative financing plans (round to the nearest cent), assuming income before bond interest and income tax is $39,000. Plan I $ Plan II $
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