Alternative Financing Plans Folmar Co. is considering the following alternative financing plans: Pla 1 answer below »

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Alternative Financing Plans

Folmar Co. is considering the following alternative financing plans: Plan 1 Plan 2 Issue 10% bonds (at face value) $1,360,000 $680,000 Issue preferred $1 stock, $10 par Ac€?? 1,130,000 Issue common stock, $5 par 1,360,000 910,000

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