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Required information [The following information applies to the questions displayed below.) Penny Arcades, Inc., is trying to decide between the following two alternatives to finance its new $15 million gaming center a. Issue $15 million of 5% bonds at face amount b. Issue 1 million shares of common stock for $15 per share. Required: 1. Assuming bonds or shares of stock are issued at the beginning of the year, complete the income statement for each alternative. (Enter your answer in dollars, not millions. (i.e. $5.5 million should be entered as 5,500,000). Round your "Earnings per Share" to 2 decimal places. Round your "Earnings per Share" to 2 decimal places.) Operating income Interest expense (bonds only) Income before tax Income tax expense (40%) Net Income Number of shares Earnings per share Issue Bonds Issue Stock $ 9,000,000 $ 9,000,000 750,000 0 $ 8,250,000 $ 9,000,000 3,300,000 3,600,000 $ 4,950,000 $ 5,400,000 2,000,000 3,000,000 $ 2.48 $ 1.80 Required information [The following information applies to the questions displayed below.) Penny Arcades, Inc., is trying to decide between the following two alternatives to finance its new $15 million gaming center: a. Issue $15 million of 5% bonds at face amount. b. Issue 1 million shares of common stock for $15 per share. 2. Which alternative results in the highest earnings per share? Multiple Choice Issue stock Issue bonds