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Larkspur, Inc. is considering these two alternatives to finance its construction of a new $2.25 milion plant: 1. Issuance of 225,000 shares of common

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Larkspur, Inc. is considering these two alternatives to finance its construction of a new $2.25 milion plant: 1. Issuance of 225,000 shares of common stock at the market price of $10 per share. 2. Issuance of $2.25 million, 5% bonds at face value. Complete the table. (Round earnings per share to 2 decimal places, e.g. $2.66.) Issue Stock Income before interest and taxes $1,730,000 Interest expense from bonds Income before income taxes Income tax expense (30%) Net income Outstanding shares Earnings per share $ +A $ $ Issue Bonds $1,730,000 830,000

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