QUESTION 6 Sorenson Co. is considering the following alternative plans for financing the company: Plan 1 Plan 2 Issue 10% bonds (at face) Issue $10 par common stock $100,000 50,000 $150,000 Income tax is estimated at 40% of income. Determine the earnings per share of common stock under the two alternative financing plans, assuming income before bond interest and in $39,000. Round your ansers to two decimal places. Earnings Per Common Share Plan 1$ Plan 2$ THIS QUESTION WILL ALSSO BE CHECKED MANUALLY.
QUESTION 6 Sorenson Co. is considering the following alternative plans for financing the company: Plan 1 Plan 2 Issue 10% bonds (at face) Issue $10 par common stock $100,000 50,000 $150,000 Income tax is estimated at 40% of income. Determine the earnings per share of common stock under the two alternative financing plans, assuming income before bond interest and in $39,000. Round your ansers to two decimal places. Earnings Per Common Share Plan 1$ Plan 2$ THIS QUESTION WILL ALSSO BE CHECKED MANUALLY.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![QUESTION 6
Sorenson Co. is considering the following alternative plans for financing the company:
Plan 1
Plan 2
Issue 10% bonds (at face)
$100,000
Issue $10 poar common stock
$150,000
50,000
Income tax is estimated at 40% of income.
Determine the earnings per share of common stock under the two alternative financing plans, assuming income before bond interest and inc
$39,000.
Round your ansers to two decimal places.
Earnings Per Common Share
Plan 1 $
Plan 2 $
THIS QUESTION WILL ALSO BE CHECKED MANUALLY.
QUESTION 7
On the first day of the fiscal year, a company issues a $960,000, 8%, 5-year bond that pays semiannual interest of $38,400, receiving ca
n the chart of accounts below](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffba9c80b-447a-4653-b87c-29850d2216b2%2F41fc51a0-5b78-461e-b6eb-57264c570e98%2Febz1cgr_processed.jpeg&w=3840&q=75)
Transcribed Image Text:QUESTION 6
Sorenson Co. is considering the following alternative plans for financing the company:
Plan 1
Plan 2
Issue 10% bonds (at face)
$100,000
Issue $10 poar common stock
$150,000
50,000
Income tax is estimated at 40% of income.
Determine the earnings per share of common stock under the two alternative financing plans, assuming income before bond interest and inc
$39,000.
Round your ansers to two decimal places.
Earnings Per Common Share
Plan 1 $
Plan 2 $
THIS QUESTION WILL ALSO BE CHECKED MANUALLY.
QUESTION 7
On the first day of the fiscal year, a company issues a $960,000, 8%, 5-year bond that pays semiannual interest of $38,400, receiving ca
n the chart of accounts below
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