(a) Issuance of 100,000 shares of common stock at the market price of $10 per share. (b) Issuance of $1 million, 7% bonds at face value. Complete the following table. (Round earnings per share to 2 decimal places, eg, 0.25) Issue Stock $660,000 Income before interest and taxes Interest expense from bonds Issue Bond $660,000 70000 i Income before income taxes 660,000 520000 Income tax expense (25%) 165000 1 147500 i Net income 495000 442500 Outstanding shares 650.000 560.000 Earnings per share Indicate which alternative is preferable. higher if stock is used. However, earnings per share is lower than earnings per share if bonds are used because of the additional shares of stock that are Net Income is outstanding e Textbook and Media