The question is, Determine for each plan the earnings per share of common stock,

Question

The question is, Determine for each plan the earnings per share of common stock, assuming that the income before bond interest and income tax is $30,000,000.
this is how far i got on the problem

Earnings per Share of Common Stock Plan 1 Plan 2 Plan 3 Earnings before bond interest and income tax $ 30,000,000 $ 30,000,000 $ 30,000,000 Bond interest 0% 0%    Income before income tax $ 30,000,000 $ 30,000,000    Income tax     12,000,000     12,000,000    Net income          Dividends on preferred stock 0%       Earnings available for common stock          ¸ Shares of common stock outstanding          Earnings per share on common stock         

Explanation / Answer

You have not provided the No of common stock issued. Lets assume it is 'N' EPS = Net Income/No of commonstock issued Plan 1 & Plan2: Net Income = $30M-$12M = $18M So EPS = $18M/N Plan 3: EPS = $30M/N

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