Effect of Financing on Earnings Per Share Three different plans for financing an $18,000,000 corporation are under consideration by its organizers. Under each of the following plans, the securities will be issued at their par or face amount, and the income tax rate is estimated at 40% of income:

Plan 1 Plan 2 Plan 3
8% bond - - $9,000,000
Prefered 4% stock, $20 par - $9,000,000 $4,500,000
Common stock 10% $18,000,000 $9,000,000 $4,500,000
Total $18,000,000 $18,000,000 $18,000,000

Determine the earnings per share of common stock for each plan, assuming that the income before bond interest and income tax is $2,100,000.