edugen iti/main.uni Kimmel, Accounting, 6e Hele I S CALCULAIOR. PRNTER VERSON: Exercise 11-14 Baja Airlines is considering these two alternatives for financing the purchase of a fleet of airplanes . Issue 50,000 shares of common stock at $40 per share. (Cash dividends have not been paid nor is the Issue 12%, 10-year bonds at face value for $2,000,000. 2. It is estimated that the company will earn $800,000 before interest and taxes as a result of this purchase. The company has an estimated tax rate of common stock outstanding prior to the new financing. 30% and has 90,000 shares of 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. (Round earnings per share to 2 decimal places, e.g. $2.66.) Plan One Issue Stock Plan Two Issue Bonds Click if you would like to Show Work for this question: 0en Shk to search