Exercise 182 x Your answer is incorrect. Try again. Zohan Health is considering two alternatives for the financing of some high technology medical equipment. These two alternatives are: 1. Issue 60,000 shares of $10 par value common stock at $50 per share. 2. Issue $3,000,000, 8%, 10-year bonds at par. It is estimated that the company will earn $900,000 before interest and taxes as a result of acquiring the medical equipment. The company has an estimated tax rate of 40% and has 80,000 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. (Round earnings per share to 2 decimal places, e.g. 2.25.) Issue Stock Issue Bonds Net income 6300001 455000 Earnings per share 4.20 4.55 Click if you would like to Show Work for this question: Open Show Work