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June CoIs Considering the Following Alternative Plans for Financing the Company

Question 123

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June Co.is considering the following alternative plans for financing the company:
June Co.is considering the following alternative plans for financing the company: Income tax is estimated at 40% of income. Determine the earnings per share of common stock under the two alternative financing plans,assuming income before bond interest and income tax is $1,000,000.
Income tax is estimated at 40% of income.
Determine the earnings per share of common stock under the two alternative financing plans,assuming income before bond interest and income tax is $1,000,000.

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