Kingbird Inc. is considering these two alternatives to finance its construction of a new $1.00 million plant: 1. 2. (a1) Issuance of 100,000 shares of common stock at the market price of $10 per share. Issuance of $1.00 million, 6% bonds at face value. Complete the table. (Round earnings per share to 2 decimal places, e.g. 2.66.) Income before interest and taxes Interest expense from bonds Income before income taxes Income tax expense (30%) Net income Outstanding shares Earnings per share LA $ $ Issue Stock $1,599,000 tA $ $ Issue Bond $1,599,000 810,000

Kingbird Inc. is considering these two alternatives to finance its construction of a new $1.00 million plant: 1. Issuance of 100,000 shares of common stock at the market price of $10 per share. 2. Issuance of $1.00 million, 6% bonds at face value. (a1) Complete the table. (Round earnings per share to 2 decimal places, eg. 2.66.)