Alternative Financing Plans Folmar Co. is considering the following alternative

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Question # 00242982 Subject Accounting Topic Accounting Tutorials: 1
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Alternative Financing Plans

Folmar Co. is considering the following alternative financing plans:

Plan 1Plan 2
Issue 10% bonds (at face value)$1,360,000$680,000
Issue preferred $1 stock, $10 par1,130,000
Issue common stock, $5 par1,360,000910,000

Income tax is estimated at 40% of income.

Determine the earnings per share on common stock, assuming income before bond interest and income tax is $408,000.

Enter answers in dollars and cents, rounding to the nearest cent.

Plan 1$ Earnings per share on common stock
Plan 2

$ Earnings per share on common stock

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  1. Alternative Financing Plans Folmar Co. is considering the following alternative

    Available for: $ 7.00 Posted on: 04/10/2016 05:22 AM
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