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-   -   Effects of financing on earnings per share (https://www.askmehelpdesk.com/showthread.php?t=783835)

  • Feb 8, 2014, 11:23 AM
    tpalmer1974
    Effects of financing on earnings per share
    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??

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