K Speedtown Marina needs to raise $1.0 million to expand the company. The company is considering issuing either: . $1,000,000 of 8% bonds payable to borrow the money, or 150,000 shares of common stock at $7 per share. (Click the icon to view additonal information.) Read the requirements. Net income before expansion Expected project income before interest and income tax Less: Interest expense Expected project income before income tax Less: Income tax expense Expected project net income Total company net income Earnings per share after expansion Plan A es O le e More info Before any new financing, Speedtown expects to earn net income of $500,000, and the company already has 100,000 shares of common stock outstanding Speedtown believes the expansion will increase income before interest and income tax by $300,000. The company's income tax rate is 30% -X e Print Done Less Income tax expense estion 6 Expected project net income Total ue ue ue ue 4 Requirements Prepare an analysis to determine which plan is likely to result in the higher earnings per share. Based solely on the earnings-per-share comparison, which financing plan would you recommend for Speedtown? Print Done Income tax expense - X Plan A Issue $1,000,000 of 8% Bonds Payable E