First Nation Financial Services is considering two plans for raising $900,000 to expand operations. Plan A is to borrow at 10%, and plan B is to issue 250,000 shares of common stock at $3.60 per share. Before any new financing, First Nation has net income of $600,000 and 200,000 shares of common stock outstanding. Assume you own most of First Nation's existing stock. Management believes the company can use the new funds to earn additional income of $800,000 before interest and taxes. First Nation's income tax rate is 40%. Read the requirements. Requirement 1. Analyze First Nation's situation to determine which plan will result in higher earnings per share. (For amounts with a $0 balance, make sure to enter "0" in the appropriate column. Round the EPS calculation to two decimal places.) Requirements 1. Analyze First Nation's situation to determine which plan will result in higher earnings per share. 2. Which plan allows you to retain control of the company? Which plan creates more financial risk for the company? Which plan do you prefer? Why? Less: Less: Print Done Choose from any drop-down list and then click Check Answer. parts remaining Clear All Check Answer First Nation Financial Services is considering two plans for raising $900,000 to expand operations. Plan A is to borrow at 10%, and plan B is to issue 250,000 shares of common stock at $3.60 per share. Before any new financing, First Nation has net income of $600,000 and 200,000 shares of common stock outstanding. Assume you own most of First Nation's existing stock. Management believes the company can use the new funds to earn additional income of $800,000 before interest and taxes. First Nation's income tax rate is 40%. Read the requirements. Less: i Requirements Less: 1. Analyze First Nation's situation to determine which plan will result in higher earnings per share. 2. Which plan allows you to retain control of the company? Which plan creates more financial risk for the company? Which plan do you prefer? Why? Print Done Choose from any drop-down list and then click Check Answer. ? 3 parts Clear All Check Answer remaining