Loren Company is considering two alternatives to finance its purchase of a new $4,000,000 office building. (a) Issue 400,000 shares of common stock at $10 per share. (b) Issue 7%, 10-year bonds at par ($4,000,000) Income before interest and taxes is expected to be $3,500,000. The company has a 30% tax rate and has 600,000 shares of common stock outstanding prior to the new financing, Instructions Calculate each of the following for each alternative: (1) Net income. (2) Earnings per share