Carla Vista Co is considering these two alternatives for financing the purchase of a Neet of airplanes. 1. Issue 60,500 shares of common stock at $41 per share. (Cash dividends have not been paid nor is the parment of any contemplated.) 2. Issue 14%,10 year bonds at face value for $2,480,500. It is estimated that the compamy will earn $829,000 befoce interest and takes as a result of this purchase. The company has an estimated tax rate of 30N and has 91,600 shares of common stock outstarding prior to the new hancing Determine the effect on net income and earnines per share for iswing stock and issulng bonds. Assume the news shares or new bonis will be outstanding for the entire vear. Start with income Before Interest and Taxts. (Round earnires per share fo 2 dechalplaces, es. \$2.6d. Start with income Before interest and Feses)