Cullumber Airlines is considering two altematives for the financing of a purchase of a fleet of airplanes. These two alternatives are: 1. Issue 85,350 shares of common stock at $30 per share. (Cash dividends have not been paid nor has the payment of any contemplated) 2. Issue 8%,10-year bonds at face value for $2,560,500. It is estimated that the company will earn $864,000 before interest and taxes as a result of this purchase. The company has an estimated tax rate of 20% and has 112,000 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. (Rhound earnings per share to 2 decimol places, as, 2.25J