Folmar Co. is considering the following alternative financing plans: Income tax is estimated at 40% of income.Determine
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Folmar Co. is considering the following alternative financing plans:
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 $800,000.
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Plan 2 Plan 1 Issue 10% bonds (at face value) Issue preferred $1 stock, $5 par Issue common stock, $5 $2,000,000 $1,000,000 par 2,000,000 1,500,000
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Related Book For
Accounting
ISBN: 978-0324662962
23rd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
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