Folmar Co. is considering the following alternative financing plans: Plan 1 Plan 2 Issue 10%...
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Folmar Co. is considering the following alternative financing plans: Plan 1 Plan 2 Issue 10% bonds (at face value) $1,040,000 $520,000 Issue preferred $1 stock, $10 par 860,000 Issue common stock, $5 par 1,040,000 700,000 Income tax is estimated at 40% of income. Determine the earnings per share on common stock, assuming income before bond interest and income tax is $312,000. Enter answers in dollars and cents, rounding to the nearest cent. Plan 1: ______Earnings per share on common stock Plan 2: ________Earnings per share on common stock
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