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Additional info Before any new financing, Wakeville Marina expects to earn net income of $550,000, and the company already has 100,000 shares of common shares outstanding. Wakeville Marina believes the expansion will increase income before interest and income tax by $180,000. The income tax rate is 40%. Wakeville Marina needs to raise $0.8 million to expand the company. Wakeville Marina is considering the issuance of either - $800,000 of 8% bonds payable, or - 100,000 common shares at $8 per share. (Click the icon to view additional information.) nearest cent.) Which financing plan would you recommend based solely on EPS? Castlegar Manufacturing Inc. has $290,000 of 12% debenture bonds outstanding. The bonds were issued at 106 in 2020 and mature in 2040 . Requirements 1. How much cash did Castlegar receive when it issued these bonds? 2. How much cash in total will Castlegar pay the bondholders through the maturity date of the bonds? 3. Take the difference between your answers to Requirements 1 and 2 . This difference represents Castlegar's total interest expense over the life of the bonds. Requirement 1. How much cash did Castlegar receive when it issued these bonds? Castlegar Manufacturing Inc. received $ at bond issuance. Requirement 2. How much cash in total will Castlegar pay the bondholders through the maturity date of the bonds? Castlegar Manufacturing Inc. will pay the bondholderss through the maturity date of the bonds. Requirement 3 . Take the difference between your answers to Requirements 1 and 2 . This difference represents Castlegar's total interest expense over the life of the bonds. The difference between your answers to Requirements 1 and 2 is $[ Castlegar's annual interest expense by the straight-line amortization method is $ Multiply the annual interest expense by 20:$