Brower Co. is considering the following alternative financing plans:

                  …..…………………………………………… Plan 1 ……………… Plan 2

Issue 10% bonds (at face value) …………. $4,000,000 ………… $2,500,000

Issue preferred $2.50 stock, $25 par …………. — ……………….. 3,000,000

Issue common stock, $10 par ……………. 4,000,000 ……………. 2,500,000

Income tax is estimated at 40% of income.

Determine the earnings per share of common stock, assuming income before bond interest and income tax is $2,000,000?