Patterson Medical Goods is embarking on a massive expansion. Assume plans call for opening 20 new stores during the next two years. Each store is scheduled to be 30% larger than the company's existing locations, offering more terms of inventory and with more elaborate displays, Management estimates that company operations will provide $1.0 million of the cash needed for expansion. Patterson Medical must raise the remaining $5.75 million from outsiders Click the icon to view information on raising the additional funds Read the finement Requirement 1. Evaluate the effect the two financing ternatives will have on Patterson's net income and eamings per share two years from now. Begin by selecting the labels needed to analyze the effect of the alternatives on net income and to show eamings per share after the expansion Next, enter the amounts to show the effect of the borrowing alternative, then enter the amounts to show the effect of the shares of stock alternative. (For amounts with a 50 balance make sure to enter "o" in the appropriate column. Round the EPs calculation to two decimal places. Enter amounts in dollar instead of millions) Alternative 1 Alternative 2 Borrow $5.75 million Issue 250,000 shares at 6% of stock Les Requirement 2. Complete the memoto Patterson's management discussing the advantages and disadvantages of borrowing and of issuing common stock to raise the needed cash Which method of raising funds would you recommend? TRANDA