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SB Electronics is considering two plans for raising $4,000,000 to expand operations. Plan A is to issue 9% bonds payable, and plan B is to

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SB Electronics is considering two plans for raising $4,000,000 to expand operations. Plan A is to issue 9% bonds payable, and plan B is to issue 500,000 shares of common stock. Before any new financing. SB Electronics has net income of $350,000 and 300,000 shares of common stock outstanding. Management believes the company can use the new funds to earn additional income of $700,000 before interest and taxes. The income tax rate is 21%. Analyze the SB Electronics situation to determine which plan will result in higher eamings per share. (Complete all answer boxes. Enter "0" for any zero batances. Round earnings. per ahare amounts to the nearest cent.) Begin by completing the analysis below for plan A, then plan B

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