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Brief Exercise 11-11 Teal Mountain Inc.currently has 690,000 shares of common stock outstanding. Teal Mountain Inc. is considering these two alternatives to finance its construction
Brief Exercise 11-11 Teal Mountain Inc.currently has 690,000 shares of common stock outstanding. Teal Mountain Inc. is considering these two alternatives to finance its construction of a new $1.55 million plant: 1. 2. Issuance of 155,000 shares of common stock at the market price of $10 per share Issuance of $1.55 million, 5% bonds at face value 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 $1,590,000 $1,590,000 Income tax expense (35%) Net income Outstanding shares 690,000 Earnings per share LINK TO TEXT INTERACTIVE TUTORIAL Indicate which alternative is preferable is preferable Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT INTERACTIVE TUTORIAL Question Attempts: 0 of 3 used
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