Three different plans for financing a $6,000,000 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			$3,000,000
Preferred 10% stock, $100 par		$3,000,000	1,500,000
Common stock, $4 par	$6,000,000	3,000,000	1,500,000
Total	$6,000,000	$6,000,000	$6,000,000

1. Determine for each plan the earnings per share of common stock, assuming that the income before bond interest and income tax is $1,100,000.Round the answers to the nearest cent.

Earnings per share of common stock

Plan 1 $_____ per share

Plan 2 $_____ per share

Plan 3 $_____ 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 $715,000. Round the answers to the nearest cent.

Earnings per share of common stock

Plan 1 $______ per share

Plan 2 $_______ per share

Plan 3 $_______ per share