Question: Plan 1 Plan 2 Issue 10% bonds (at face value) $1,240,000 $620,000 Issue preferred $1 stock, $10 par 1,030,000 Issue common stock, $5 par 1,240,000

Plan 1 Plan 2 Issue 10% bonds (at face value) $1,240,000

Plan 1 Plan 2 Issue 10% bonds (at face value) $1,240,000 $620,000 Issue preferred $1 stock, $10 par 1,030,000 Issue common stock, $5 par 1,240,000 830,000 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 $372,000. Enter answers in dollars and cents, rounding to two decimal places. Plan 1 A Earnings per share on common stock Plan 2 $ Earnings per share on common stock

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