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Rustic Campsites, Incorporated, is trying to decide between the following two alternatives to finance its new $ 3 4 million gaming center: a . Issue

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 $2.04 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..., $5.5 milion should be entered $55,500,000). Round your
"Earnings per Share" to 2 decimal places.)
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