Homework: Chapter 12A Question 14, EF12-20 (book/static) HW Score: 68.46%, 16.62 of 25 points Point of 2 is to issue 500,000 shares of common stock Before a income of $700,000 bene and taxes 58 Electronics is considering two plans for raising $4,000,000 to expand operations Plan A is to issue 9% bends payable, and plan $350,000 and 300,000 shares of common stock outstanding Management believes the company can use the new funds to earn a shuation to determine which plan will result in higher aamings per share. (Complete all answer boxes Enter for any ere balances D Save new financing 58 Ectronics has net income of 21% Analyze the 50 c Begin by completing the analysis below for plan A, then plan Plan A: Issue $4,000,000 of 9% Bands Payable Net income before new project 700000 Expected income on the new project before interest and income tax expenses 700,000 Less: interest expense 360.000 Project income before income tax 340,000 71.400 Las: Income tax expense 238000 Project net income 588000 Net income with new project Eamings per share with new project Plan A Plan 8