OBJ. 1 p.679 PE 14-1A Alternative financing plans Frey Co. is considering the following alternative financing plans: Plan 1 Plan 2 Issue 5% bonds (at face value) Issue preferred $1 stock, $20 par Issue common stock, $25 par $6,000,000 $2,000,000 6,000,000 4,000,000 6,000,000 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 $800,000