Burden Inc. is considering these two alternatives to finance its construction of a new $2 million plant:(a) Issuance of 200,000 shares of common stock at the market price of $10 per share.(b) Issuance of $2 million, 6% bonds at face value.Complete the table and indicate which alternative is preferable.

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Issue Stock Issue Bond Income before interest and taxes Interest expense from bonds $1,500,000 $1,500,000 Income before income taxes Income tax expense (30%) Net income Outstanding shares Earnings per share 700,000