Income tax is estimated at 40 of income determine the

Question

Rhett Co., which produces and sells biking equipment, is financed as follows:

bonds payable 7.5%           $30,000,000

preferred $3 stock, $20 par       30,000,000

common stock, $20 par.           30,000,000

 

Income tax is estimated at 40% of income. Determine the earnings per share of common stock, assuming that the income before bond interest and income tax is %15,000,000, $$17,500,000, and $20,000,000