tpalmer1974
Feb 8, 2014, 11:23 AM
If a corporation, which produces widgets, is financed at :
Bonds payable, 7.5% - 30,000,000
Preferred $3 stock, $20 par - 30,000,000
Common Stock, $20 Par - 30,000,000
Income Tax is 40%
How would I determine the earnings per share of common stock, assuming that the income before bond interest and income tax is (a) $15,000,000, (b) $17,500,000, and (c) $20,000,000??
Bonds payable, 7.5% - 30,000,000
Preferred $3 stock, $20 par - 30,000,000
Common Stock, $20 Par - 30,000,000
Income Tax is 40%
How would I determine the earnings per share of common stock, assuming that the income before bond interest and income tax is (a) $15,000,000, (b) $17,500,000, and (c) $20,000,000??