Crane Health is considering two alternatives for the financing of some high technology medical equipment. These two alternatives are:

$1.$  Issue $60,000$ shares of $$10$ par value common stock at $$50$ per share.

$2.$  Issue $$3,000,000,8\%,10-$year bonds at par.

It is estimated that the company will earn $$952,000$ before interest and taxes as a result of acquiring the medical equipment. The company has an estimated tax rate of $40\%$ and has $80,000$ shares of common stock outstanding prior to the new financing.