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Part D ASHER Corporation is considering two plans for raising $1,000,000 to expand its operations into the west. The first plan involves the sale of

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Part D ASHER Corporation is considering two plans for raising $1,000,000 to expand its operations into the west. The first plan involves the sale of 5%, 10-year bonds that could be issued at face value, and the second plan involves the sale of 40,000 common shares at $25 per share. Either alternative would raise $1,000,000. Prior to any new financing, ASHER Corporation has net income of $800,000 and 200,000 common shares outstanding. Management believes the expansion will generate additional income of $300,000 before interest and taxes. The income tax rate is 30% Required: Show all calculations Calculate project NET INCOME, Total Company income and the EPS assuming: 1) the bonds are issued 2) the common shares are issued

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