How to calculate earning per share?

Accounting homework help calculating outstanding shares and earning per share?

• Songbird Airlines is considering these two alternatives for financing the purchase of a fleet of airplanes: Issue 57,800 shares of common stock at $46 per share. (Cash dividends have not been paid nor is the payment of any contemplated.) Issue 15%, 10-year bonds at face value for $2,658,800. It is estimated that the company will earn $810,760 before interest and taxes as a result of this purchase. The company has an estimated tax rate of 30% and has 91,400 shares of common stock outstanding prior to the new financing. Determine the effect on net income and earnings per share for (a) issuing stock and (b) issuing bonds. Assume the new shares or new bonds will be outstanding for the entire year. I already filled out some of them but i'm stuck on the outstanding shares and earning per shares and can't seem to find how to do it in my stupid book and its irritating the **** out of me -_______________-. plan (a) interest before interest and taxes 810760 interest 0 income before taxes 810760 income tax expense 243228 net income 567532 outstanding shares ? earnings per share ? plan (b) plan (a) interest before interest and taxes 810760 interest 398820 income before taxes 411940 income tax expense 123582 net income 288358 outstanding shares ? earnings per share ? please tell me how you got the answers (is there a formula to calculate them? thanks)

• Answer:

  i'm scared of numbers