Sheridan Airlines is considering two alteratives for the financing of a purchase of a fleet of airplanes. These two altomatives are: 1. Issue 94,900 shares of common stock at $30 per share. (Cash dividends have not been paid nor is the payment of any contemplated.) 2. Issue 9, 10-year bonds at face value for $2,547,000. It is estimated that the company will earn $704,500 before interest and taxes as a result of this purchase. The company has an estimated tax rate of 30% and has 100,000 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. (Round earnings per share to 2 decimal places, e.g. 2.25.) Plan One Issue Stock Plan Two Issue Bonds Not Income Earnings per share