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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, 68 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 note 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 payments higher if issuing the nate?
(b) By how much are dividend payments higher by issuing stock?
(c) Which alternatue results in higher eamings 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 statement for each
alternative. (Enter your answers in dollars, not millions (1. e.45.5 milion shocid be entered as 5,500,000). Round your
"Earnings per Share" to 2 decimal places.)
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