Brief Exercise 10-16 Pina Colada Corp. is considering two alternatives to finance its construction of a new $2 million plant. (a) Issuance of 200,000 shares of common stock at the market price of $10 per share. (b) Issuance of $2 million, 8% bonds at face value. Complete the following table. (Round earnings per share to 2 decimal places, e.g. 0.25.) Issue Stock Issue Bond Income before interest and taxes Interest expense from bonds Income before income taxes Income tax expense (40%) Net income $770,000 $770,000 Outstanding shares 570,000 Earnings per share Indicate which alternative is preferable. Net income is additional shares of stock that are outstanding. if stock is used. However, earnings per share is than earnings per share if bonds are used because of the Question Attempts: 0 of 3 usedSAVE FOR LATER SUBMIT ANS