Bond interest and income tax


Effect of Financing on Earnings per Share Kelton Co., which produces and sells skiing equipment, is financed as follows:

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) $10,000,000, (b) $12,000,000, and (c) $14,000,000.

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

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Accounting Basics: Bond interest and income tax
Reference No:- TGS045632

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