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Sorenson Co. is considering the following alternative plans for financing the company: Plan 1 Plan 2 Issue 10% Bonds (at face) Issue $10 par Common
Sorenson Co. is considering the following alternative 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. Plan 1 $120,000 Determine the earnings per share of common stock under the two alternative financing plans, assuming income before bond interest and income tax is $30,000. Round your answers to two decimal places. Plan 2 $80,000 $40,000 Check My Work 1 more Check My Work uses remaining. Previous Next Sorenaon ca. is corsidering the following aiternatuve plans for financing the companys acsowers to two decamal places
Sorenson Co. is considering the following alternative 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. Plan 1 $120,000 Determine the earnings per share of common stock under the two alternative financing plans, assuming income before bond interest and income tax is $30,000. Round your answers to two decimal places. Plan 2 $80,000 $40,000 Check My Work 1 more Check My Work uses remaining. Previous Next
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