CALCULATOR PRIRTER VERSION BAN Question 1 Sheridan Inc. is considering two alternatives to finance its construction of a new $1.20 milionant (a) Issuance of 120,000 shares of common stock at the market price of $10 per share (6) Issuance of $1,200,000, bonds at face value Complete the following table (round caringe per share to decimal placek 0.25.) Issue Stock Issue Bond Income before interest and taxes $690,000 $690,000 Interest expense Income before income taxes Income tax expense (25%) Net income Outstanding shares 570,000 Earnings per than Indicate which alternative is preferable Net income stock is used. However earnings per share is than earnings per share if bonds are used because of the additional shares of stock that are outstanding