Bank One Financial Services is considering two plans for raising $500,000 to expand operations Plan A is to borrow at 6%, and plan B is to issue 100,000 shares of common stock at $5.00 per share Before any new financing, Bank One has net income of $200,000 and 100,000 shares of common stock outstanding Assume you own most of Bank One's existing stock. Management believes the company can use the new funds to earn additional income of $400,000 before interest and taxes Bank One's income tax rate is 30% Read the requirements Requirement 1. Analyze Bank One's situation to determine which plan will result in higher earnings per share (For amounts with a $0 balance, make sure to enter "0" in the appropriate column. Round the EPS calculation to two decimal places) Less Less Plan A Issue $500,000 of 6% Bonds Payable Plan B Issue $500,000 of Common Stock

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