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Nautieal Marina neerds ta raise $0.6 milion to expand the company. Nasutical Marina is corsidering the issuance of tither - $800,000 of 6% bonds payable,
Nautieal Marina neerds ta raise $0.6 milion to expand the company. Nasutical Marina is corsidering the issuance of tither - $800,000 of 6\% bonds payable, or - 100,000 common shares at \$a per share. (Click the icon to view additional information.) Which linancing plan would you recammend based solely on EPS? Additional info Before any new financing, Nautical Marina expects to earn net income of $250,000, and the company already has 100,000 shares of common shares outstanding. Nautical Marina believes the expansion will increase income before interest and income tax by $190,000. The income tax rate is 35%. Which financing plan would you recommend based solely on EPS? Neither plan Plan 1 Plan 2 Earnings per share after expansion Expected project income before income tax Expected project income before interest and income tax Expected project net income Income tax expense Interest expense Net income before expansion Total company net income
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