Vatican Co. is considering the following alternative financing plans: Plan 2 $3,750,000 4,500,000 3,750,000 Issue 10% bonds (at face value) Issue preferred $2.50 stock, $25 par Issue common stock, $20 par Income tax is estimated at 40% of income. Determine the earnings per share of common stock, assuming that income before bond interest and income tax is $3,000,000. Enter answers in dollars and cents, rounding to the nearest whole cent. Earnings per share on common stock Earnings per share on common stock Plan 1 Plan 1 Plan 2 $6,000,000 6,000,000

Vatican Co, is considering the following alternative financing plans: income cax is estimated at 40% of income. Determine the earnings per shore of cormmon stock, assuming that income before bond interest and income tax is $3,000,000. Enter answers in dollars and cents, rounding to the nearest whole cent. Plan 1 Eamings per share on common stock Pian 2 Earnings per share on common stock