Frey Co. is considering the following alternative financing plans: Plan 1 Plan 2 Issue 10% bonds (at face value) $1,080,000 $540,000 Issue preferred $1 stock, $10 par — 900,000 Issue common stock, $5 par 1,080,000 720,000 Income tax is estimated at 40% of income. Determine the earnings per share on common stock, assuming that income before bond interest and income tax is $756,000. Enter answers in dollars and cents, rounding to two decimal places. Plan 1 $ Earnings per share on common stock Plan 2 $ Earnings per share on common stock

Answer and Explanation:

Particulars                                        Plan 1Plan 2

Income before interest and tax$756,000     $756,000

Less:  Interest expenses          -108,000-54,000  

                                          ($1,080,000 ×10%)     ($540,000 × 10%)

Income before tax                          $648,000    $702,000

Less: Income tax expense          -$259,200  -$280,800

                                          ($648,000 × 40%)    ($702,000 × 40%)

Net income                                   $388,800$421,200

Less: Preferred dividend               $0           -$90,000

Profit available for common stockholder's (A)$388,800  $331,200

Divided by Number of common shares (B)216,000       $144,000

                                                        ($1,080,000 ÷ $5)  ($720,000 ÷ $5)

Earning per share  (A) ÷ (B)            $1.8                     $2.3

By dividing the profit by the number of shares we can get the earning per share and the same is shown above

the correct answer would be b, when, queen, calder hall and london.

explanation:

we always capitalize words when a paragraph or sentence is starting, when an important name is used, when a place is being written, or simply when a noun is used, etc. so in this sentence, sentence is starting from 'when', so it will be written in capital letters. secondly, queen is considered to be an important person, so it will also be written in capital letter. next, the name of the town is mentioned, i-e calder hall, which will also be written in capital letters. in the last,   city name is being used, 'london', which will also be written in capital letters. so option b is the most appropriate one.

answer; human resource management.(hrm);