Alternative Financing Plans
Desmond Co is considering the following alternative financing plans:
Plan Plan
Issue bonds at face value $ $
Issue preferred $ stock, $ par
Issue common stock, $ par
Income tax is estimated at of income.
Determine the earnings per share of common stock, assuming that income before bond interest and income tax is $
Enter answers in dollars and cents, rounding to two decimal places.
Plan $fill in the blank
Earnings per share on common stock
Plan $fill in the blank
Earnings per share on common stock
