Question
S. Tadki Ailines is considering two alteratives for finincing of a purchase of a fleet of airplane There are two alfemale 1. Isue 60,000shares of
S. Tadki Ailines is considering two alteratives for finincing of a purchase of a fleet of airplane There are two alfemale 1. Isue 60,000shares of of common stock at 545 per share (no cash dividends are or will be 2. Issue 10%, 10 year bonds at face value for $2, 700,000, It is estimated the company will cam 5800.000 before interest and taxes as a result of this parchase the commany hiss an estimated tux rite ol sure ark has V. Whares of comthon stock outsigm prior to the new financing. REQUIRED: Determine the ellect on net income and camines per share for these rwo methods of finarcine
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