Speegleville Marina needs to raise $1.5 million to expand. Speegleville's president is considering two plans: Plan A: Issue $1,500,000 of 8 percent bonds payable to borrow the money Plan B: Issue 100,000 common shares at $15.00 per share Before any new financing, Speegleville expects to earn net income of $800,000, and the company already has 200,000 common shares outstanding. Speegleville believes the expansion will increase income before interest and income tax by $300,000. The income tax rate is 30 percent. Prepare an analysis to determine which plan is likely to result in higher earnings per share. Which financing plan would you recommend? Plan A Plan B Issue $1,500,000 Issue $1,500,000 of 8% Bonds Payable Net income before expansion Expected income on the new project before interest and income taxes Less: Interest expense Project income before income tax Less: Income tax expense 800000 Project net income of Common Shares 800000 Net income with new project Earnings per share with new project Which financing plan would you recommend? Enter any number in the edit fields and then continue to the next