E9-1 Penny Arcades. trying to decide between the following two alternatives to finance its new million gaming center a issue $35 million of 7% bonds at face amount Issue million shares of common stock for 35 per share

. m/connect/bmEBook.do?set Tab=secti MD - Times interest earned rato The following two alternatives tornance is now 536 to mon gaming center a issue 535 milion or 795 tonds atrace amount De 1 On Shes of common stock for so per benestar Operating income $19.000.000 517.000 DOO terest Income before tax Income Taxpense 39) Net Income Number of OOO OOO 5.OOO.OOO INC Serage por share het Required Assuming bonds or shares of stocked at itements Sacromote the income 2 Wren alterative results in the highest samnings 592 on January 2018 Tropical Paradise DOROWS Cewe bank There we BMW Contorni porto sto potential CSLOT pony man with Sue Granary 1818 Required Resond thence the installment note payable and the stwo monthly met 59. Soney lang entorno a Gement for a the company are so man and total Required Calculate total stockholders equity prior to the 2 Asuming an operating tease Cute med to 6 ASLing a capital lease calculate the debt equity ratio why might coney and proter an operating ease ES 4 Led below are terms and de associated with bonds Terms