Brief Exercise 11-11 Sage Hill Inc.currently has 640,000 shares of common stock outstanding. Sage Hill Inc. is considering these two alternatives to finance its construction of a new $1.30 million plant 1. Issuance of 130,000 shares of common stock at the market price of $10 per share. 2. Issuance of $1.30 million, 8% bonds at face value. Your answer is partially correct. Try again Complete the table. (Round earnings per share to 2 decimal places, e.g. $2.66.) Issue Stock Issue Bonds Income before interest and taxes Interest expense from bonds Income before income taxes $1,540,000 $1,540,000 Income tax expense (40%) Net income Outstanding shares 640,000 Earnings per share 1.2 1.3 Your answer is correct. Indicate which alternative is preferable. Issuance of bonds Click if you would like to Show Work for this question: Open Show Work