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Alternative Financing Plans Desmond Co. is considering the following alternative financing plans: Plan 1 Plan...

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Accounting

Alternative Financing Plans Desmond Co. is considering the following alternative financing plans: Plan 1 Plan 2 Issue 10% bonds (at face value) $800,000 $400,000 Issue preferred $1 stock, $10 par 660,000 Issue common stock, $5 par 800,000 540,000 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 $240,000. Enter answers in dollars and cents, rounding to two decimal

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