CengageNOWv2| Online teachin × b Answered: CengageNOWv2| Onli x i v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=.. 00 Ch 14-2 Practice Exercises Alternative Financing Plans Frey Co. is considering the following alternative financing plans: Plan 1 Plan 2 Issue 10% bonds (at face value) $960,000 $480,000 Issue preferred $1 stock, $10 par 800,000 Issue common stock, $5 par 960,000 640,000 Income tax is estimated at 40% of income. Determine the earnings per share on common stock, assuming that income before bond interest and income tax is $768,000. Enter answers in dollars and cents, rounding to two decimal places. Plan 1 Earnings per share on common stock Plan 2 Earnings per share on common stock 2:04 PM P Type here to search 3/17/2020 II

CengageNOWv2| Online teachin × b Answered: CengageNOWv2| Onli x i v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=.. 00 Ch 14-2 Practice Exercises Alternative Financing Plans Frey Co. is considering the following alternative financing plans: Plan 1 Plan 2 Issue 10% bonds (at face value) $960,000 $480,000 Issue preferred $1 stock, $10 par 800,000 Issue common stock, $5 par 960,000 640,000 Income tax is estimated at 40% of income. Determine the earnings per share on common stock, assuming that income before bond interest and income tax is $768,000. Enter answers in dollars and cents, rounding to two decimal places. Plan 1 Earnings per share on common stock Plan 2 Earnings per share on common stock 2:04 PM P Type here to search 3/17/2020 II

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

can you please help me find the earnings for 1 and 2.

CengageNOWv2| Online teachin ×
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00
Ch 14-2 Practice Exercises
Alternative Financing Plans
Frey Co. is considering the following alternative financing plans:
Plan 1
Plan 2
Issue 10% bonds (at face value)
$960,000
$480,000
Issue preferred $1 stock, $10 par
800,000
Issue common stock, $5 par
960,000
640,000
Income tax is estimated at 40% of income.
Determine the earnings per share on common stock, assuming that income before bond interest and income tax is $768,000.
Enter answers in dollars and cents, rounding to two decimal places.
Plan 1
Earnings per share on common stock
Plan 2
Earnings per share on common stock
2:04 PM
P Type here to search
3/17/2020
II

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