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need help asap! i need this done in an hour The Board of Directors for Nieh Manufacturing, Inc. is considering two plans for financing the

need help asap! i need this done in an hour image text in transcribed
The Board of Directors for Nieh Manufacturing, Inc. is considering two plans for financing the purchase of new plant equipment. Plan #1 would require the issuance of $1,000,000, 7%, 20-year bonds at face value. Plan #2 would require the issuance of 50,000 shares of $5 par value common stock that is selling for $20 per share on the open market. Nieh currently has 100,000 shares of common stock outstanding and the income tax rate is expected to be 25%. Assume that income before interest and income taxes is expected to be $500,000 if the new factory equipment is purchased. Instructions Complete the following schedule that shows the expected net income after taxes and the earnings per share on common stock under each of the plans that the board of directors is considering. Plan #1 Plan #2 Issue Bonds Issue Stock Income before interest and taxes $500,000 $500,000 Interest expense Income before taxes Income taxes (25%) Net income Outstanding shares Earnings per share

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