McLinden Corp. is considering financing $10,000,000 of its upcoming operations by issuing equity and bonds. McLinden is considering issuing $1,000,000 of 10%, $10 par Preferred stock, $4,000,000 of $1 par Common stock, and $5,000,000 of 12% 5 year bonds. Assume that the income before bond interest and income tax is $4,000,000. The tax rate is 40%.

Determine the Earnings per Share calculation for the first year if McLinden finances in this manner. Use the table given below:

Earnings before interest
and income tax $

Deduct interest on bonds _________
Income before income tax $

Less: income tax _________

Net income $
Dividends on
preferred stock _________

Available for dividends
on common stock $

Shares of common
stock outstanding ÷_________

Earnings per share on
common stock $