Evaluate Alternative Financing Plans 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 Income tax is estimated at 40% of income What factors other than earnings per share should be considered in evaluating alternative financing plans?

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Evaluate Alternative Financing Plans

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

Income tax is estimated at 40% of income

What factors other than earnings per share should be considered in evaluating alternative financing plans?

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