Alternative Financing Plans
Fly Co. is considering the following alternative financing plans:
![1264_Alternative Financing Plans.gif](https://secure.tutorsglobe.com/CMSImages/1264_Alternative%20Financing%20Plans.gif)
Income tax is estimated at 40% of income.
Determine the earnings per share on common stock, assuming income before bond interest and income tax is $2,000,000.
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