Question Help Wavetown Marina needs to raise $1.0 million to expand the company. The company is considering issuing eithers $1,000,000 of 6% bonds payable to borrow the money; or . 100,000 shares of common stock at $10 per share. (Click the icon to view additonal information.) Read the requirements Start by preparing the analysis to determine which plan is likely to result in higher earnings per share (EPS). (For amounts with a $0 balance sure to enter "O" in the appropriate column) Less: Loss: Earnings per share after expansion Expected project income before income tax Expected project income before interest and income tax Expected project net income Income tax expense C Interest expense Net income before expansion 3 Total company net income Clear All Check Answer A Before any new financing, Wavetown expects to earn net income of $400,000, and the company already has 100,000 shares of common stock outstanding. Wavetown believes the expansion will increase income before interest and income tax by $100,000. The company's income tax rate is 40%. i Requirements X Prepare an analysis to determine which plan is likely to result in the higher earnings per share. Based solely on the earnings-per-share comparison, which financing plan would you recommend for Wavetown? PLEASE BE SURE TO ARRANGE THE ANALYSIS BY USING THE DROP DOWN LIST. THANK YOU