BSF Co., which produces and sells skiing equipment, is financed as follows: Bonds payable, 10%...
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Accounting
BSF Co., which produces and sells skiing equipment, is financed as follows: Bonds payable, 10% (issued at face amount) $1,800,000 Preferred 1% stock, $10 par 1,800,000 Common stock, $25 par 1,800,000 Income tax is estimated at 60% of income. Round your answers to the nearest cent.
a. Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is $828,000. $_______ 1 per share
b. Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is $1,008,000. $_______ 2 per share
c. Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is $1,188,000. $________ 3 per share.
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