Sunland Health is considering two alternatives for the financing of some high technology medical equipment. These two are: 1. Issue 60,000 shares of $10 par value common stock at $50 per share. 2. Issue $3,000,000,9%,10-year bonds at par. It is estimated that the company will earn $984,000 before interest and taxes as a result of acquiring the medical equipme company has an estimated tax rate of 40% and has 84,000 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 places, e.g. 2.25.)