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Effect of Financing on Earnings per Share Henriksen Co., which produces and sells biking...

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Accounting

Effect of Financing on Earnings per Share
Henriksen Co., which produces and sells biking equipment, is financed as follows:
Bonds payable, 10%(issued at face amount)
$800,000
Preferred $2 stock, $20 par
800,000
Common stock, $25 par
800,000
Income tax is estimated at 40% of income.
Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is (a) $296,000,(b) $376,000, and (c)
$456,000.
Enter answers in dollars and cents, rounding to two decimal places.
a. Earnings per share on common stock $
b. Earnings per share on common stock $
c. Earnings per share on common stock $
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