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please make sure to complete both plan a analysis and Plan B analysis AP Electronics is considering two plans for raising $2,000,000 to expand operations.

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image text in transcribed please make sure to complete both plan a analysis and Plan B analysis
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AP Electronics is considering two plans for raising $2,000,000 to expand operations. P $250,000 and 500,000 shares of common stock outstanding. Management believes the situation to determine which plan will result in higher earnings per share. (Complete all a Begin by completing the analysis below for plan A, then plan B. Plan A: Issue $2,000,000 of 10% Bonds Payable Net income before new project Expected income on the new project before interest and income tax expenses Less: Interest expense Project income before income tax Less: Income tax expense Project net income Net income with new project Earnings per share with new project: MIT Plan A Plan B AP Electronics in two storing 12.000 expand customs and to 10 bodo piso 200.000 how can Buy ong road $250,000 and 500,000 hrs of corn on Management teves the company cannone 5000 below and we with plan were angebote for your searchet tegn by completing the below for the plana AP Electronics is considering two plans for raising $2,000,000 to expand operations. Plan A is to issue 10% bonds payable, and plan B is to issue 200,000 shares of common stock. Before any new financing, AP Electronics has net income of $250,000 and 500,000 shares of common stock outstanding. Management believes the company can use the new funds to earn additional income of $500,000 before interest and taxes. The income tax rate is 20%. Analyze the AP Electronics situation to determine which plan will result in higher earnings per share. (Complete all answer boxes. Enter "O" for any zero balances. Round earnings per share amounts to the nearest cent.)

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