Effect of Financing on Earnings per Share Henriksen Co., which produces and sells biking equipment, is...

 

 

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Effect of Financing on Earnings per Share Henriksen Co., which produces and sells biking equipment, is financed as follows: Bonds payable, 10% (issued at face amount) Preferred $2 stock, $20 par Common stock, $25 par Income tax is estimated at 40% of income. $2,450,000 2,450,000 2,450,000 Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is (a) $1,200,500, (b) $1,445,500, and (c) $1,690,500. Enter answers in dollars and cents, rounding to two decimal places. a. Earnings per share on common stock $ b. Earnings per share on common stock c. Earnings per share on common stock $ Effect of Financing on Earnings per Share Henriksen Co., which produces and sells biking equipment, is financed as follows: Bonds payable, 10% (issued at face amount) Preferred $2 stock, $20 par Common stock, $25 par Income tax is estimated at 40% of income. $2,450,000 2,450,000 2,450,000 Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is (a) $1,200,500, (b) $1,445,500, and (c) $1,690,500. Enter answers in dollars and cents, rounding to two decimal places. a. Earnings per share on common stock $ b. Earnings per share on common stock c. Earnings per share on common stock $

Answer rating: 100% (QA)

To determine the earnings per share EPS of common stock we need to calculate the net income availabl... View the full answer