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Effect of Financing on Earnings per Share Miller Co., which produces and sells skiing equipment,...

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Accounting

Effect of Financing on Earnings per Share Miller Co., which produces and sells skiing equipment, is financed as follows: Bonds payable, 10% (issued at face amount) $1,200,000 Preferred $2 stock, $20 par 1,200,000 Common stock, $25 par 1,200,000 Income tax is estimated at 40% of income. Determine the earnings per share on common stock, assuming that the income before bond interest and income tax is (a) $408,000, (b) $528,000, and (c) $648,000.

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