Three different plans for financing a $$5,050,000$ corporation are under consideration by its organizers. Under each of the following plans, the securities will be issued at their par or face amount, and the income tax rate is estimated at $40\%$ of income. Plan $1$ Plan $2$ Plan $3$

$10\%$ bonds $2,525,000$

Preferred $10\%$ stock, $$100$ par $2,525,0001,262,500$

Common stock, $$4$ par $5,050,0002,525,0001,262,500$

Determine for each plan the earnings per share of common stock assuming that the income before bond

interest & income tax is $$1,200,000$

Earnings per share of common stock Plan $1$ Plan $2$ Plan $3$

Determine for each plan the earnings per share of common stock assuming that the income before bond

interest & income tax is $$780,000$

Plan $1$ Plan $2$ Plan $3$