CALCIATO HESALE WITHUCTOR FULL SCREEN BAR NEN Exercise 15-12 Orlole Airlines is considering two alternatives for the financing of a purchase of a fleet of airplanes. These two alternatives are: 1. Issue 84,600 shares of common stock at $30 per share. (Cash dividends have not been paid or is the payment of any contemplated 2. Issue 996, 10-year bonds at face value for $2.538.000 It is estimated that the company will earn $714,000 before interest and taxes as a result of this purchase. The company has an estimated tax rate of 30% and has 120,000 shares of common stock outstanding prior to the new financing Determine the effect on net income and earnings per share for these two methods of financing (Round carings per share to 2 decimal places, ag. 225) Plan One Issue Stock Plan Two Issue Bonds Net Income $ $ Earnings per share