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Kingbird, Inc. is considering these two alternatives to finance its construction of a new $1.57 million plant: 1. Issuance of 157,000 shares of common stock
Kingbird, Inc. is considering these two alternatives to finance its construction of a new $1.57 million plant: 1. Issuance of 157,000 shares of common stock at the market price of $10 per share. Issuance of $1.57 million, 5% bonds at face value. 2. (a) Complete the table. (Round earnings per share to 2 decimal places, e.g. $2.66.) Issue Stock Issue Bonds $1,570,000 Income before interest and taxes $1,570,000 Interest expense from bonds Income before income taxes Income tax expense (40%) Net income $ $ Outstanding shares 596,600 Earnings per share $
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