Exercise 15-12 Blossom Airlines is considering two alternatives for the financing of a purchase of a heat of airplanes. These two alternatives are: 1. Issue 75,000 shares of common stock at $30 per share. (Cash dividends have not been paid nor is the payment of any contemplated) 2. Issue 6 , 10-year bonds at face value for $2,250,000 It is estimated that the company will eam $700,000 before interest and taxes as a result of this purchase. The company has an estimated to rate of 30% and has 100,000 shares of common stock outstanding prior to the financing. Determine the effect on net income and earnings per share for these two methods of financing (Round earnings per share to 2 decimal places, 2.25.) Plan One Issue Stack Plan Two Issue Bonds Net Income Earnings per share