Penny Arcades, Inc., is trying to decide between the following two alternatives to finance its new $17 million gaming center:

a.	Issue $17 million of 6% bonds at face amount.
b.	Issue 1 million shares of common stock for $17 per share.

Required informatin

1.	Assuming bonds or shares of stock are issued at the beginning of the year, complete the income statement for each alternative. (Enter your answers in dollars not in millions. Round your "Earnings per Share" to 2 decimal places.) 2. Which alternative results in the highest earnings per share? -Issue bonds -Issue stock