One Life Marine Ltd. needs to raise $10,000,000 to expand the company. One Life Marine is considering the issuance of either: Plan A: $10,000,000 of 8% bonds payable to borrow the money at a price of 100, or Plan B: 100,000 shares of common stock at $100 per share Before any new financing, One Life Marine expects to earn net income (after-tax) of $600,000 and the company already has 100,000 shares of common shares outstanding. One Life Marine believes the expansion will increase income before interest and income tax by $1,400,000. The income tax rate is 30%. The formula to be used to calculate earnings per share is: net income divided by the ending number of common shares outstanding.

Required: 1. The incremental net income (after-tax) of the expansion under Plan A would be Answer. 2. The total company net income (after-tax) under Plan A would be Answer. 3. The earnings per share rounded to the nearest cent under Plan A would be Answer. 4. The incremental net income (after-tax) of the expansion under Plan B would be Answer. 5. The total company net income (after-tax) under Plan B would be Answer. 6. The earnings per share rounded to the nearest cent under Plan B would be Answer.