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Homework: Chapter 12 HW Score: 0 of 1 pt E12-20 (book/static) 2 of 7 (4 complete HW Score: 5155%, 3.61 of 7 pts O stion

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Homework: Chapter 12 HW Score: 0 of 1 pt E12-20 (book/static) 2 of 7 (4 complete HW Score: 5155%, 3.61 of 7 pts O stion Help SB Electronics is considering two plans for raising $4,000,000 to expand operations Plan Ais to issue 9% bonds payable and plan is to issue 500.000 shares of common stock before any new financing S8 Electronics has net income of $350,000 and 100,000 shares of common stock outstanding Management boves the company can use the new funds to eam adional income of 700.000 before interest and me The income tax rates 30% Analyze the SB Electronics Muation to determine which plan wil rest in her earrings por share (Complete all answer boxes. Enter for you bancos Round carings per share amounts to the nearest cont.) Begin by completing the analysis below for plan A then plan B Plan A: Issue $4,000,000 of 9% Bonds Payable Not income before new project Expected income on the new project before interest and income tax expenses Los Interest expense Project income before income tax Less Income tax expense Enter any number in the edit fields and then click Check Clear All Check Answer Homework: Chapter 12 HW Score: 0 of 1 pt E12-20 (book/static) 2 of 7 (4 complete HW Score: 51.55%, 3.61 of Question Help SB Electronics is considering two plans for raising $4,000,000 to expand operations. Plan A isto bonds payable and plan is to sue 500.000 shares of common stock. Before any financing. 58 Electronics has net income of $350,000 and 300,000 shares of common stock outstanding Management believes the company can use the new funds to earn additional income of $700.000 before interest and are The income tax is 30%. Analyze the 58 Electronics situation to determine which plan will result in higher earnings per share (Complete all answer boxesEnter for any zero balances. Round ings per amounts to the nearest cent) Expected income on the new project before interest and income tax expenses Less: Interest expense Project income before income tax Less Income tax expense Project net income Not income with new project Earnings per share with new project Plan A Plan B Enter any number in the edit fields and then click Check Answer Clear All Check Answer 2 parts remaining Type here to search 0 tem

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