Blossom Health is considering two alternatives for the financing of some high technology medical equipment. These two
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Blossom Health is considering two alternatives for the financing of some high technology medical equipment. These two alternatives are:
Issue shares of $ par value common stock at $ per share.
Issue $year bonds at par.
It is estimated that the company will earn $ before interest and taxes as a result of acquiring the medical equipment. The company has an estimated tax rate of and has shares of common stock outstanding prior to the new financing.
Determine the effect on net thicome and earnings per share for these two methods of financing. Round earnings per share to decimal ploces, es
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