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Henriksen Co., which produces and sells biking equipment, is financed as follows: Bonds...

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Accounting

Henriksen Co., which produces and sells biking equipment, is financed as follows:

Bonds payable, 10% (issued at face amount) $1,650,000
Preferred $1 stock, $10 par 1,650,000
Common stock, $25 par 1,650,000

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) $742,500, (b) $907,500, and (c) $1,072,500.

Enter answers in dollars and cents, rounding to two decimal places.

a. Earnings per share on common stock $

b. Earnings per share on common stock $

c. Earnings per share on common stock $

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