Brief Exercise 10-16 Sheridan Company is considering two alternatives to finance its construction of a new $3 million plant. (a) Issuance of 300,000 shares of common stock at the market price of $10 per share. (b) Issuance of $3 million, 6% 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 $655,000 $655,000 Interest expense from bonds Income before income taxes Y Income tax expense (35%) Net income Outstanding shares 355,000 Earnings per share Indicate which alternative is preferable. NILULLE HY INSTRUCTOR FULL SCREEN PINTE BACK Complete the following table. (Round earnings per share to 2 decimal places, e.g. 0.25.) Issue Stock Issue Band Income before interest and taxes $655.000 $655,000 Interest expense from bonds Thcome before income taxes Income tax expense (359) Net income Outstanding shares 355,000 Earnings per share Indicate which alternative is preferable Net income is stock is used. However, carings per share is than earnings per share if bonds are used because of the additional shares of stock that are outstanding Question Attempts: 0 of 3 used SAVE FOR LATES SUBMIT