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Sorenson Co., is considering the following alternative plans for financing the company: Plan 1 Plan 2 Issue 1090 Bonds (at face) Issue $10 par Common

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Sorenson Co., is considering the following alternative plans for financing the company: Plan 1 Plan 2 Issue 1090 Bonds (at face) Issue $10 par Common Stock Income tax is estimated at 40% of income. $20,000 $30,000 $10,000 Determine the earnings per share of common stock under the two alternative financing plans, assuming income before bond interest and income tax is $9,000 Round your answers to two decimal places. Plan 1 Plan 2

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