Times New... 12 B Parag'ach styles Diciale . Kit Kat Co. is considering the following alternative plans for financing a $4,000,000 company: Each plan finances some of the corporation's operation by issuing common stock. However, the percentage financed by common stock varies from o Plan 1 - 100% o Plan 3 -25% Income tax is estimated at 40% of income Bonds and stocks are issued at par or face amount Famings before interest and income taxes are $800,000 Plan 1 Plan 2 Plan 3 Issue 12% bonds (at face value) $2,000,000 . Preferred 9% stock, S50 par $2,000,000 $1,000,000 Issue Common Stock, S10 par $4,000,000 $2,000,000 $1,000,000 Total S4,000,000 $4,000,000 $4,000,000 Earnings before bond interest and income tax Interest on bonds Income before income tax Income Tax Net Income Dividends on preferred stock Available for dividends on common stock Shares of common stock outstanding Earnings per share on common stock 110% 1 of 1 154 words Focus ook Air