?Sandhill Health is considering two alternatives for the financing of some high technology medical equipment. These two alternatives are:

$1.)$Issue $60,000$ ?shares of $$10$ ?par value common stock at $$50$ ?per share.

$2.)$Issue $$3,000,000,8\%,10-$year bonds at par.

It is estimated that the company will earn $$930,000$ ?before interest and taxes as a result of acquiring the medical equipment. The company has an estimated tax rate of $40\%$ ?and has $90,000$ ?shares of common stock outstanding prior to the new financing.

Determine the effect on net income and earnings per share for these two methods of financing.