Rustic Campsites, Incorporated, is trying to decide between the following two alternatives to finance its new $$34$ million gaming

center:

a$.$ Issue $$34$ million, $6\%$ note.

b$.$ Issue $1$ million shares of common stock for $$34$ per share with expected annual dividends of $$2\mathrm{.}04$ per share.

Required:

Assuming the nate or shares of stock are issued at the beginning of the yeat, complete the income statement for each alternative.

Answer the following questions for the current year:

$($a$)$ By how much are interest poyments higher if issuing the nate?

$($b$)$ By how much are dividend poyments higher by lssuing stock?

$($c$)$ Which altematue results in higher earnings per share?

Complete this question by entering your answers in the tabs below.

Required $1$

Assuming the note or shares of stock are issued at the beginning of the year, complete the income staterrent for each

alternative. $($Enter your answers in dollars, not millions $(1...,$ $$5\mathrm{.}5$ milion should be entered $$55,500,000).$ Round your

"Earnings per Share" to $2$ decimal places.$)$