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Misseal Company has net income of $750,000 and 100,000 shares of common stock outstanding. The company is considering a project that requires $330,000 and is

Misseal Company has net income of $750,000 and 100,000 shares of common stock outstanding. The company is considering a project that requires $330,000 and is considering two options: Option 1 is issue $330,000 of 3% bonds payable. Option 2 is to issue an additional 200,000 shares of common stock for $330,000. The additional project will increase income before interest and taxes by $530,000 each year. The company estimates income tax expense to be 40%. What would be the earnings per share of each plan? (Round your answers to two decimal points.) A) $9.52 option 1, $10.68 option 2 B) $9.52 option 1, $3.56 option 2 C) $10.62 option 1, $10.68 option 2 D) $10.62 option 1; $3.56 option 2.

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