rk Question 6 of 10 - /10 E View Policies Current Attempt in Progress Cabo Company has $1,000,000 in assets and $1,000,000 in stockholders' equity, with 40,000 shares outstanding the entire year. It has a return on assets of 10%. During 2021, it had net income of $100,000. On January 1, 2022, it issued $400,000 in debt at 4% and immediately repurchased 20,000 shares for $400,000. Management expected that had it not issued the debt, it would have had net income of $100,000 in 2022. Assuthe the company pays dividends on common stock equal to its net income each year. Also, assume the accrued interest on the debt was paid at December 31, 2022 and the company has no other debt outstanding at year- end. (a) Determine the company's net income and earnings per share for 2021 and 2022. (Ignore taxes in your computations) (Round earnings per share to 2 decimal places, eg. $2.66.) 2021 2022 Net income $ Earnings per share $ eTextbook and Media Attempts: 0 of 2 used Submit Answer Net income $ I Earnings per share $ e Textbook and Media Save for Later Attempts: 0 of 2 used Submit A (b) The parts of this question must be completed in order. This part will be available when you complete the part above. (c) The parts of this question must be completed in order. This part will be available when you complete the part above