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Earnings per share on common stock  $fill in the blank 1 b.  Earnings per share on common stock  $fill in the blank 2 c.  Earnings per share on common stock  $fill in the blank 3

Earnings per share on common stock  $fill in the blank 1 b.  Earnings per share on common stock  $fill in the blank 2 c.  Earnings per share on common stock  $fill in the blank 3

Financial Accounting
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter14: Long-term Liabilities: Bonds And Notes
Section: Chapter Questions
Problem 1E: Domanico Co., which produces and sells biking equipment, is financed as follows: Income tax is...
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Domanico Co., which produces and sells biking equipment, is financed as follows:

Bonds payable, 10% (issued at face amount) $900,000
Preferred $1 stock, $10 par 900,000
Common stock, $25 par 900,000

Income tax is estimated at 40% of income.

Determine the earnings per share on common stock, assuming that the income before bond interest and income tax is (a) $279,000, (b) $369,000, and (c) $459,000.

Enter answers in dollars and cents, rounding to two decimal places.

a.  Earnings per share on common stock  $fill in the blank 1

b.  Earnings per share on common stock  $fill in the blank 2

c.  Earnings per share on common stock  $fill in the blank 3

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