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The board o directors of Lauber Corporation are considering two plans for financing he purchase o new p a e uprnen Plar #1 would require
The board o directors of Lauber Corporation are considering two plans for financing he purchase o new p a e uprnen Plar #1 would require heissuance of>> 00 000 6% 0 year bond a cealue Plan 2 would require the issuance of 200,000 shares of $5 par value common stock that is selling for $25 per share on the open market. Lauber Corporation currently has 100,000 shares of common stock outstanding and the income tax rate is expected to be 30%. Assume that income before interest and income taxes is expected to be $500.000 if the new factory equipment is purchased. Prepare a schedule that shows the expected net income after taxes and the earnings per share on common stock under each of the plans that the board of directors is considering. (Ifanswer is zero please enter 0, do not leave any fields blank. Round eanings per share to 2 decimal places, eg. 5.25) Plan #1 Issue Bonds Plan #2 Issue Stock Total Expenses Cost of Revenue Income Before Taxes Interest Expense Income Taxes Outstanding Shares Earnings Per Share Net Loss Net Income Income Before Interest and Taxes
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