Required information Exercise 9-1A Compare financing alternatives (L09-1) The following information applies to the questions displayed below.) Penny Arcades, Inc., is trying to decide between the following two alternatives to finance its new $35 million gaming center: a. Issue $35 million, 7% note. b. Issue 1 million shares of common stock for $35 per share. Exercise 9-1A Part 1 Required: 1. Assuming the note 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 millions. (i.e., $5.5 million should be entered as 5,500,000). Round your "Earnings per Share" to 2 decimal places.) Exercise 9-1A Part 1 Required: 1. Assuming the note 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 millions. (i.e., $5.5 million should be entered as 5,500,000). Round your "Earnings per Share" to 2 decimal places.) Issue Note 11,000,000 $ Issue Stock 11,000,000 $ Operating incomo Interest expense (note only) Income before tax Income tax expense (35%) Net income Number of shares Earnings per share (Not income / # of shares) 4,000,000 5,000,000 Exercise 9-1A Part 2 2. Which alternative results in the highest earnings per share? Multiple Choice Issue stock Issue