Penny Arcades, Inc., is trying to decide between the following two alternatives to finance its new $32 million gaming center: a. Issue $32 million of 7% bonds at face amount. b. Issue 1 million shares of common stock for $32 per share. Required: 1. Assuming bonds or shares of stock are issued at the beginning of the year, complete the income statement for each alternative. (Enter your answer in dollars, not millions. (i.e., $5.5 million should be entered as 5,500,000). Round your "Earnings per Share" to 2 decimal places. Round your "Earnings per Share" to 2 decimal places.) Issue Bonds $ 10,700,000 Issue Stock $ 10,700,000 Operating income Interest expense (bonds only) Income before tax $ $ Income tax expense (35%) Net income Number of shares Earnings per share 0 3,700,000 4,700,000 Penny Arcades, Inc., is trying to decide between the following two alternatives to finance its new $32 million gaming center: a. Issue $32 million of 7% bonds at face amount. b. Issue 1 million shares of common stock for $32 per share. 2. Which alternative results in the highest earnings per share? Multiple Choice Issue bonds Issue stock