Larkspur, Inc.currently has 720,000 shares of common stock outstanding. Larkspur, Inc. is considering these two alternatives to finance its construction of a new $1.70 millionplant:

1.Issuance of170,000shares of common stock at the market price of $10per share.

2.Issuance of $1.70 million,6% bonds at face value.

Complete the table.(Round earnings per share to 2 decimal places, e.g. $2.66.)

Issue Stock Issue Bonds

Income before interest and taxes $1,620,000 $1,620,000

Interest expense from bonds $ $

Income before income taxes $ $

Income tax expense (40%) $ $

Net income$ $ $

Outstanding shares $ $720,000

Earnings per share $ $