Effect of financing on earnings per share. Miller Co. which produces and sells skiiibg equipment,...
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Effect of financing on earnings per share. Miller Co. which produces and sells skiiibg equipment, is financed as follows. Bonds payable 10% face amount. 1,550,000 Preferred $2 stock, $20 par. 1,550,000 Common stock,$25 par. 1,550,000 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) 558,000 (b) 713,000(c)868,000
Effect of financing on earnings per share. Miller Co. which produces and sells skiiibg equipment, is financed as follows.
Bonds payable 10% face amount. 1,550,000
Preferred $2 stock, $20 par. 1,550,000
Common stock,$25 par. 1,550,000
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) 558,000 (b) 713,000(c)868,000
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