Talbot Electronics is considering two plans for raising $1.000.000 to expand opera- tions. Plan A is to borrow at 9%, and plan B is to issue 100,000 shares of common stock. Before any new financing. Talbot has net income of $600,000 and 100.000 shares of common stock outstanding. Management believes the company can use the new funds to earn addi- tional income of $420.000 before interest and taxes. The income tax rate is 35%. Required Analyze Talbot's situation to determine which plan will result in higher earnings per share. Use Exhibit 15-8 (page 595) as a guide.