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Splish Brothers Inc. is considering these two alternatives to finance its construction of a new $1.80 million plant: 1. Issuance of 180,000 shares of common

Splish Brothers Inc. is considering these two alternatives to finance its construction of a new $1.80 million plant: 1. Issuance of 180,000 shares of common stock at the market price of $10 per share. 2. Issuance of $1.80 million, 6% bonds at face value. (a) Complete the table. (Round earnings per share to 2 decimal places, e.g. $2.66.) Income before interest and taxes Interest expense from bonds Income before income taxes Income tax expense (35%) Net income Outstanding shares Issue Stock $1,428,000 $ $ Earnings per share $ $ Issue Bonds $1,428,000 600,000

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