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Sage Hill Inc. is considering these two alternatives to finance its construction of a new 51.36 million plant: Issuance of 136,000 shares of common stock

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Sage Hill Inc. is considering these two alternatives to finance its construction of a new 51.36 million plant: Issuance of 136,000 shares of common stock at the market price of $10 per share 2. Issuance of $1.36 million, 8% bonds at face value. 1. (a) Complete the table. (Round earnings per share to 2 decimal places, es. $2.66.) Issue Stock $1.452.000 Issue Bonds $1.452.000 Income before interest and taxes Interest expense from bonds Income before income taxes Income tax expense (40%) Net income 5 $ Outstanding shares 584.000 Earnings per share $

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