Bonds Payable, 8% (issued at face amount) $5,000,000
Preferred $3 stock (nonparticipating), $50 par $5,000,000
Common Stock, $25 par $5,000,000
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 (a) $1,000,000, (b) $1,500,000, (c) $2,500,000