Beqin by completing the analvsis below for plan A, then plan B

JO Electronics is considering two plans for raising $3 000,000 to expand operations. Plan Ais to issue 5% bonds payable, and plan 8 is to issue 100 000 shares of common stock. Before any new financing, JO Electronics has net income of S3S0,000 and 400,000 shares of common stock outstanding Management believes the company can use the new funds to earn additional income of $700,000 before interest and taxes. The income tax rate is 21 Analyze the JO Electronics situation to determine which plan will result in higher earnings per share. (Complete all answer boxes. Enter "0" for any zero balances. Round eamings per share amounts to the nearest cent) Begin by completing the analysis below for plan A, then plan 8. Net income before new project Expected income on the new project before interest and income tax expenses Less: Interest expense Project income before income tax Less: Income tax expense Project net income Net income with new project Earnings per share with new project: Plan A Plan 8 Plan A: Issue of 5% Bonds Payable 300000 700000 160000 360000