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Frontier City is trying to decide between the following two alternatives to finance its new $10 million roller coaster: (a) Issue $10 million of 6%
Frontier City is trying to decide between the following two alternatives to finance its new $10 million roller coaster: (a) Issue $10 million of 6% bonds at face amount, or (b) Issue one million shares of common stock for $10 per share Required: 1. Assuming bonds or shares of stock are issued at the beginning of the year, complete the income statement listed below for each alternative. 2. Which alternative results in the highest earnings per share? Complete this question by entering your answers in the tabs below. Assuming bonds or shares of stock are issued at the beginning of the year, complete the income statement listed below for each alternative. (Enter your answers in dollars, not in millions. Amounts to be deducted should be indicated with a minus sign.)
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