Effect of financing on earnings per share. Henriksen Co., which produces and sells biking equipment, is financed as follows: Bonds payable, 5% (issued at face amount) $6,000,000 Preferred $2.00 stock, $100 par $3,000,000 Common Stock, $25 par $5,000,000 Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is (a) $900,000, (b) $1,100,000 and (c) $1,500,000. Enter answers in dollars and cents, rounding to two decimals places. (a) Earnings per share on common stock $ (b) Earnings per share on common stock $ (c) Earnings per share on common stock $

Effect of financing on earnings per share. Henriksen Co., which produces and sells biking equipment, is financed as follows: Bonds payable, 5% (issued at face amount) $6,000,000 Preferred $2.00 stock, $100 par $3,000,000 Common Stock, $25 par $5,000,000 Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is (a) $900,000, (b) $1,100,000 and (c) $1,500,000. Enter answers in dollars and cents, rounding to two decimals places. (a) Earnings per share on common stock $ (b) Earnings per share on common stock $ (c) Earnings per share on common stock $

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter8: Liabilities And Stockholders' Equity

Section: Chapter Questions

Problem 8.1.3P

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Brower Co. is considering the following alternative financing plans: 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 2,000,000.
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