Larkspur, Inc.currently has 830,000 shares of common stock outstanding. Larkspur, Inc. is considering these two alternatives to finance its construction of a new $2.25 millionplant:

1. Issuance of225,000shares of common stock at the market price of $10per 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 Issue Bonds

Income before interest and taxes $1,730,000 $1,730,000

Interest expense from bonds

Income before income taxes

Income tax expense (30%)

Net income

Outstanding shares 830,000

Earnings per share