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Sunland Inc. is considering these two alternatives to finance its construction of a new $2.00 million plant: 1. Issuance of 200,000 shares of common
Sunland Inc. is considering these two alternatives to finance its construction of a new $2.00 million plant: 1. Issuance of 200,000 shares of common stock at the market price of $10 per share. 2. Issuance of $2.00 million, 5% bonds at face value. (a) Complete the table. (Round earnings per share to 2 decimal places, e.g. $2.66.) Issue Stock Income before interest and taxes $1,680,000 Interest expense from bonds Income before income taxes Income tax expense (30%) Net income $ $ Outstanding shares Earnings per share $ eTextbook and Media Issue Bonds I $1,680,000 780,000
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