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Brief Exercise 15-10 Wildhorse Inc. is considering two alternatives to finance its construction of a new $1.90 millon plant. (a) Issuance of 190,000 shares of
Brief Exercise 15-10 Wildhorse Inc. is considering two alternatives to finance its construction of a new $1.90 millon plant. (a) Issuance of 190,000 shares of common stock at the market price of $10 per share. (b) Issuance of $1,900,000, 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 $650,000 $650,000 Interest expense Income before income taxes Income tax expense (40%) Net income Outstanding shares 460,000 Earnings per share
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