Alternative Financing Plans Desmond Co. is considering the following alternative financing plans: Plan 2 $720,000 1,200,

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Alternative Financing Plans Desmond Co Is Considering The Following Alternative Financing Plans Plan 2 720 000 1 200 1 (25.89 KiB) Viewed 10 times

Alternative Financing Plans Desmond Co. is considering the following alternative financing plans: Plan 2 $720,000 1,200,000 960,000 Issue 10% bonds (at face value) Issue preferred $1 stock, $10 par Issue common stock, $5 par Income tax is estimated at 40% of income. Plan 1 $1,440,000 1,440,000 Determine the earnings per share of common stock, assuming that income before bond interest and income tax is $720,000. Enter answers in dollars and cents, rounding to two decimal places. Plan 1 Earnings per share on common stock Plan 2 Earnings per share on common stock