BSF Co., which produces and sells skiing equipment, is financed as follows: Bonds payable, 10% (issued at face amount) $1,600,000 Preferred 1% stock, $10 par 1,600,000 Common stock, $25 par 1,600,000 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 $608,000. $ per share b. Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is $768,000. $ per share c. Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is $928,000. $ per share
BSF Co., which produces and sells skiing equipment, is financed as follows:
Bonds payable, 10% (issued at face amount) $1,600,000
Common stock, $25 par 1,600,000
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 $608,000.
$ per share
b. Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is $768,000.
$ per share
c. Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is $928,000.
$ per share
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