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Two Companies Are Financed as Follows:​Income Tax Is Estimated at 40

Question 147

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Two companies are financed as follows:​Income tax is estimated at 40% of income for both companies.Determine for each company the earnings per share of common stock, assuming that the income before bond interest and income taxes is $2,280,000 each. Two companies are financed as follows:​Income tax is estimated at 40% of income for both companies.Determine for each company the earnings per share of common stock, assuming that the income before bond interest and income taxes is $2,280,000 each. ​ ​

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