Effect of Financing on Earnings per Share Henriksen Co., which produces and sells biking equipment,...
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Effect of Financing on Earnings per Share Henriksen Co., which produces and sells biking equipment, is financed as follows: Bonds payable, 10% (issued at face amount) $250,000 Preferred $1 stock, $10 par 250,000 Common stock, $25 par 250,000 Income tax is estimated at 40% of income. Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is (a) $95,000, (b) $120,000, and (c) $145,000. Enter answers in dollars and cents, rounding to two decimal places. a. Earnings per share on common stock $fill in the blank 1 b. Earnings per share on common stock $fill in the blank 2 c. Earnings per share on common stock $fill in the blank 3
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