Net Income / (Loss) Interest Adjustment for Interest Expense Dlvidends Earnings per Share Expenses Income before Interest and Taxes Income before Troxes Income Tax Expense Interest Net Income / (Loss] Outstanding Shares Pre-debt Net Income Retalned Earnings, January 1 Retalned Earnings, December 31 Revenues Total Expenses Total Revenues Top management of Ivanhoe company is considering two altemative capital structures for 2027. The first (the "no debt" structure) would be to have $1,200,000 in assets and $1,200,000 in stockholders' equity, with 42,200 shares outstanding the entire year. This is the structure the company had on December 31, 2026. Alternatively, on January 1, 2027, the company could issue $386,000 in debt at 6% interest (the "with debt" structure) and immediately use the proceeds to repurchase 21,100 shares of stock for $422,000. The expected amount of net income (ignoring taxes). prior to any interest costs, is $120,000 for 2027 . Assume the company pays dividends on common stock equal to its net income each year. Also, assume the accrued interest on the debt was paid at December 31, 2027, and the company has no other debt outstanding at year-end. Also, assume the company has $1,200,000 in assets at both the beginning and the end of 2027 . (a) Your answer is partially correct. Compute the company's net income and earnings per share under both structures. (Ignore income taxes in your computations.) (Round earnings per share to 2 decimal places, e.g. 2.66.)