Teal Mountain Inc. is considering these two alternatives to finance its construction of a new $1.75 million plant:

1.		Issuance of 175,000 shares of common stock at the market price of $10 per share.
2.		Issuance of $1.75 million, 6% bonds at face value. Complete the table. (Round earnings per share to 2 decimal places, e.g. $2.66.)

Teal Mountain Inc. is considering these two alternatives to finance its construction of a new $1.75 million plant: 1. Issuance of 175,000 shares of common stock at the market price of $10 per share. Issuance of $1.75 million, 6% bonds at face value. 2. (a) Complete the table. (Round earnings per share to 2 decimal places, e.g. $2.66.) Issue Stock $1,525,000 Issue Bonds $1,525,000 Income before interest and taxes Interest expense from bonds Income before income taxes Income tax expense (30%) Net income $ $ Outstanding shares 700,000 Earnings per share $ $