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Effect of Financing on Earnings Per Share BSF Co., which produces and sells skiing equipment, is financed as follows: Bonds p

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a b c
EBIT        966,000        1,176,000        1,386,000
Less: Interest        210,000            210,000            210,000
EBT        756,000            966,000        1,176,000
Less: Tax        453,600            579,600            705,600
Net Income        302,400            386,400            470,400
Preferred Dividend           21,000              21,000              21,000
Earnings for Common Shareholders        281,400            365,400            449,400
Number of shares           84,000              84,000              84,000
Earnings per share 3.35 4.35 5.35
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