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Owen Co is considering the following alternative financing plans Plan 1 Plan 2 Issue 7% bonds (at face value) $5000000 $400000 Issue preferred $1 stock $20 par — 3600000 Issue common st

Owen Co. is considering the following alternative financing plans:

  Plan 1 Plan 2
Issue 7% bonds (at face value) $5,000,000   $3,400,000  
Issue preferred $1 stock, $20 par   3,600,000  
Issue common stock, $25 par 5,000,000   3,000,000  

Income tax is estimated at 40% of income.

Determine theearnings per share of common stock, assuming income beforebondinterest and income tax is $750,000.

Enter answers in dollars and cents, rounding to the nearest whole cent.

Plan 1 $Earnings per share on common stock
Plan 2 $Earnings per share on common stock

Feb 11 2020 View more View Less

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