Effect of Financing on Earnings per Share Domanico Co., which produces and sells

Effect of Financing on Earnings per Share
Domanico Co., which produces and sells biking equipment, is financed as follows:
Bonds payable, 8% (issued at face amount)$10,000,000Preferred $5 stock, $10 par10,000,000Common stock, $20 par10,000,000Income tax is estimated at 40% of income.
Determine the , assuming that the income before  interest and income tax is (a) $10,500,000, (b) $11,800,000, and (c) $13,000,000.
Enter answers in dollars and cents, rounding to the nearest whole cent.
Solution: Computation of the Earning Per ShareParticula rs Amount Amount Amount income before bond interest and income tax 5 1,05,00,000 $148,120,000 $ 1,30,00,000Less Bond lnterest[10000000*8%:l…

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