8) A corporation is considering two plans for raising $3,000,000 to expand its operations. The first plan is to sell $3,000,000 of 6%, 10-year bonds at face value. The second plan is to sell 50,000 shares of $5 par value common stock for $3,000,000. Prior to any refinancing, the company has net income of $850,000 and 200,000 shares of common stock outstanding. Management believes the expanded operations will generate additional income of $366,000 before interest and taxes. The income tax rate is 40%. a. Compute earnings per share assuming the bonds are issued. b. Compute earnings per share assuming the stock is issued. c. Based on these computations, which plan should be advised? d. What other factors should be considered