Three different plans for financing a $4,600,000 corporation are under consideration by its organizers. Under each of the following plans, the securities will be issued at their par or face amount, and the income tax rate is estimated at 40% of income. Plan 1 Plan 2 Plan 3 10% bonds $2,300,000 Preferred 10% stock, 5100 par Common stock, 54.6 par - $2,300,000 2,300,000 $4,600,000 $4,600,000 54,600,000 1,150,000 1,150,000 $4,600,000 Total Round the answers to nearest cent. Instructions: 1. Determine for each plan the earnings per share of common stock, assuming that the income before bond interest and income tax is $9,200,000 Earnings per share of common stock s 5.52 per share Plan 1 Plan 2 $ 10.82 x per share Plan 3 21.30 X per share 2. Determine for each plan the earnings per share of common stock, assuming that the income before bond interest and income tax is $4,370,000 Earnings per share of common stock Plans 2.62 per share Plan 2 5.01 X per share 9.71 x per share Plan 3 Previous Next >