Howell Company is considering two alternatives for the financing of some high technology medical equipment. These two alternatives are: 1. Issue 500,000 ordinary shares with a $10 par value at $50 per share. 2. Issue $25,000,000, 10-year 10% semi-annual coupon bonds, with a yield to maturity of 8%. After acquiring the medical equipment, earnings before interest and taxes is expected to increase to $9,000,000. The company has an estimated tax rate of 30% and has 1,200,000 ordinary shares outstanding prior to the new financing. Required: (1) Compute issue price of the coupon bonds. (ii) Determine the effect on net income and earnings per share for these two methods of financing. Discuss