Two companies are financed as follows:

Income tax is estimated at 40% of income.
Determine for each company the earnings per share of common stock,assuming that the income before bond interest and income taxes is $2,280,000 each.

Question

Two companies are financed as follows:
  
Income tax is estimated at 40% of income.
Determine for each company the earnings per share of common stock,assuming that the income before bond interest and income taxes is $2,280,000 each.

Quizplus · Accepted Answer

The Answer of Two companies are financed as follows:
  
Income tax is estimated at 40% of income.
Determine for each company the earnings per share of common stock,assuming that the income before bond interest and income taxes is $2,280,000 each.

Two Companies Are Financed as Follows