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Penny Arcades, Inc., is trying to decide between the following two alternatives to finance its new $35 million gaming center: Issue $35 million, 7% note.

Penny Arcades, Inc., is trying to decide between the following two alternatives to finance its new $35 million gaming center:

Issue $35 million, 7% note.

Issue 1 million shares of common stock for $35 per share.

2. Which alternative results in the highest earnings per share? Multiple Choice Issue stock O Issue note 2. Which alternative results in the highest earnings per share? Multiple Choice Issue stock O Issue

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