a.  Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is $198,000. $fill in the blank 1 per share b.  Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is $243,000. $fill in the blank 2 per share c.  Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is $288,000.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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BSF Co., which produces and sells skiing equipment, is financed as follows:

Bonds payable, 10% (issued at face amount) $450,000
Preferred 1% stock, $10 par 450,000
Common stock, $25 par 450,000

Income tax is estimated at 60% of income.

Round your answers to the nearest cent.

a.  Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is $198,000.
$fill in the blank 1 per share

b.  Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is $243,000.
$fill in the blank 2 per share

c.  Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is $288,000.
$fill in the blank 3 per share

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