Alternative Financing Plans Brower Co. is considering the following alternative financing plans: Plan 1 Plan...
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Alternative Financing Plans Brower Co. is considering the following alternative financing plans: Plan 1 Plan 2 Issue 10% bonds (at face value) $4,000,000 $2,500,000 Issue preferred $2.50 stock, $25 par 3,000,000 Issue common stock, $10 par 4,000,000 2,500,000 Income tax is estimated at 40% of income. Determine the earnings per share of common stock, assuming income before bond interest and income tax is $2,000,000. Enter answers in dollars and cents, rounding to the nearest whole cent.
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