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 $1,500,000 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 $1,500,000 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 $1,500,000 each.

Two Companies Are Financed as Follows