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please provide missing answers 1. Issue 52,500 shares of commonstock at $44 per share. (Cash dividends have not been paid nor is the payment of
please provide missing answers
1. Issue 52,500 shares of commonstock at $44 per share. (Cash dividends have not been paid nor is the payment of any contemplated.) 2. Issue 13%,10-year bonds at face value for $2,310,000. It is estimated that the company will earn $813,000 before interest and taxes as a result of this purchase. The company has an estimated tax rate of 30% and has 92,000 shares of common stock outstanding prior to the new financing. Determine the effect on net income and carnings per share for issuing stock and issuing bonds. Assume the new shares or new bonds will be outstanding for the entire year. Start with Income Before Interest and Taxes. (Round earnings per share to 2 decimal places, eg. \$2.66. Start with income Before interest and Taxes) Step by Step Solution
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