Effect of financing on earnings per share. Henriksen Co., which produces and sells biking equipment, is financed as follows: Bonds payable, 5% (issued at face amount) $6,000,000 Preferred $2.00 stock, $100 par $3,000,000 Common Stock, $25 par $5,000,000 Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is (a) $900,000, (b) $1,100,000 and (c) $1,500,000. Enter answers in dollars and cents, rounding to two decimals places. (a) Earnings per share on common stock $ (b) Earnings per share on common stock $ (c) Earnings per share on common stock $
Effect of financing on earnings per share.
Henriksen Co., which produces and sells biking equipment, is financed as follows:
Bonds payable, 5% (issued at face amount) $6,000,000
Common Stock, $25 par $5,000,000
Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is (a) $900,000, (b) $1,100,000 and (c) $1,500,000.
Enter answers in dollars and cents, rounding to two decimals places.
(a) Earnings per share on common stock $
(b) Earnings per share on common stock $
(c) Earnings per share on common stock $
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