1. EX.14.01.A 2. EX.14.02 3. EX.14.03 4. EX.14.04 5. EX.14.05.E 6. EX.14.06.E 7. EX.14.07.E 8. EX.14.08.E 9. EX.14.09.1 10. EX.14.11 11. EX.14.14 12. PR.14.04 13. PR.14.0
1. EX.14.01.A 2. EX.14.02 3. EX.14.03 4. EX.14.04 5. EX.14.05.E 6. EX.14.06.E 7. EX.14.07.E 8. EX.14.08.E 9. EX.14.09.1 10. EX.14.11 11. EX.14.14 12. PR.14.04 13. PR.14.0
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question

Transcribed Image Text:1. EX. 14.01.ALGO
2. EX.14.02
3. EX.14.03
4. EX.14.04
5. EX.14.05.BLANKSHEET.AL...
6. EX.14.06.BLANKSHEET.AL...
7. EX.14.07.BLANKSHEET.AL...
8. EX.14.08.BLANKSHEET.AL...
9. EX.14.09.BLANKSHEET.AL...
10. EX.14.11.BLANKSHEET.A...
11. EX.14.14.ALGO
12. PR.14.04.BLANKSHEET.A...
13. PR.14.02.BLANKSHEET.A...
C
Effect of Financing on Earnings per Share
Henriksen Co., which produces and sells biking equipment, is financed as follows:
Bonds payable, 10% (issued at face amount)
$1,000,000
Preferred $2 stock, $20 par
1,000,000
Common stock, $25 par
1,000,000
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) $470,000, (b)
$570,000, and (c) $670,000.
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 $
JAN
20
A
I
0.28
1.3
W
X
P
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