Sally's Legal Services, Inc. has 200 common shares outstanding. The company needs an additional $10,000 to buy a new machine. It is considering two alterna- tives to raise the money: (1) issue 100 new shares of common stock at $100 par value, and (2) issue bonds (or debt) at a 6 percent interest rate. With either the common stock or the debt alternative, it is expected that the firm's EBIT will be $2,400 and its tax rate is 50 percent. 43 Determine the earnings per share for each financing option. Determine the EBIT indifference point between the two methods of financ- ing Determine the earnings per share at the EBIT indifference point. (a) (b) (c)