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JO Electronics is considering two plans for raising 55,000,000 to expand operations. Plan A is to issue 4% bonds payablo, and plan B is to

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JO Electronics is considering two plans for raising 55,000,000 to expand operations. Plan A is to issue 4% bonds payablo, and plan B is to issue 200,000 shares of cornmon stock Before any new financing. JO Electronics has net income of $400,000 and 100,000 shares of common stock outstanding. Management belleves the company can use the new funds to eam additional income of $800,000 before interest and taxes. The income lax rate is 21%. Analyze the Jo Electronics situation to determine which plan will result in higher. earnings per share. (Complete all answer boxes Enter " 0 for any zoro balances. Round earnings per share amounts to the nearest cent)

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