Cullumber Company is considering these two alternatives for financing the purchase of a flect of airplanes 1. Issue $2,000 shares of common stock at $45 per share. (Cash dividends hwve not been p.id noe is the payment of any contemplated) 2. Issue 11%,15 vear bonds at face value for $2,340,000 It is estimated that the company will earn $803,000 before interest and taxes as a result of this purchase. The company has an estimated tax rate of 40% and has 91,500 shares of common stock outstanding prior to the new financire. Determine the effect on net income and earnings per share for issuing stock and issuing bonds Assume the new shares or new bonds will be outstanding for the entire year. (loond earnirgs per share to 2 decimal places, es $2.66 )