Question: Page 1 o 1. PE.14-01.ALGO (Algorithmic) Alternative Financing Plans Frey Co. is considering the following alternative financing plans: Plan 2 $420,000 -700,000 560,000 Plan 1

Page 1 o 1. PE.14-01.ALGO (Algorithmic) Alternative Financing Plans Frey Co. is considering the following alternative financing plans: Plan 2 $420,000 -700,000 560,000 Plan 1 Issue 10% bonds (at face value) $840,000 Issue preferred $1 stock, $10 par Issue common stock, $5 par 840,000 Income tax is estimated at 40% of income. Determine the earnings per share on common stock, assuming that income before bond interest and income tax is $504,000. Enter answers in dollars and cents, rounding to the nearest cent. Plan 1$ Plan 2 $ Earnings per share on common stock

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