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Brief Exercise 11-11 (Part Level Submission) Splish Brothers Inc.currently has 670,000 shares of common stock outstanding. Splish Brothers Inc. is considering these two alternatives to
Brief Exercise 11-11 (Part Level Submission) Splish Brothers Inc.currently has 670,000 shares of common stock outstanding. Splish Brothers Inc. is considering these two alternatives to finance its construction of a new $1.45 milion plant: 1. Issuance of 145,000 shares of common stock at the market price of $10 per share 2, Issuance of $1.45 million, 6% bonds at face value (a) Complete the table. (Round earnings per share to 2 decimal places, e.g. $2.66.) Issue Stock Issue Bonds $1,570,000 8700 Income before interest and taxes Interest expense from bonds Income before income taxes Income tax expense (35%) $1,570,000 1570000 Net income Outstanding shares 670,000 Earnings per share LINK TO TEXT INTERACTIVE TUTORIAL Attempts: 0 of 3 used
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