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A company with EBIT of $5,000,000 is considering two financing alternatives. The first alternative would have $23 million of bonds at 7% interest and 900,000

A company with EBIT of $5,000,000 is considering two financing alternatives. The first alternative would have $23 million of bonds at 7% interest and 900,000 common shares outstanding, whereas the second would have $45 million of bonds at 7% interest and only 700,000 shares outstanding. The company is in the 35% tax bracket. 
      
 Required:   
 B.  Construct the bottom half of the income statement (including EPS) for each alternative if EBIT increases by 25%.
 Your answers to this open-ended assignment should be placed in the space below this line. 
B  Alternative #!Alternative #2  
  EBIT     
  Interest     
  Earnings before taxes     
  Income tax     
  Net income     
  Number of shares outstanding     
  Earnings per share     

Note: Please put your answers only in the section below the Bold Red sentence at the end of the Required section below.

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