The board of directors of Carla Vista Corporation is considering two plans for financing the purchase of new plant equipment. Plan #1

would require the issuance of $ 5,180,000, 6%, 20-year bonds at face value. Plan #2 would require the issuance of 260,000 shares of $

5 par value common stock that is selling for $ 25 per share on the open market. Carla Vista Corporation currently has 200,000 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 $ 660,000 if the new factory equipment is purchased.

May you also show work so I can understand it?

The board of directors of Carla Vista Corporation is considering two plans for financing the purchase of new plant equipment. Plan 1 would require the issuance of $ 5,180,000,6%, 20-year bonds at face value. Plan #2 would require the issuance of 260,000 shares of 5 par value common stock that is selling for $25 per share on the open market. Carla Vista Corporation currently has 200,000 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 $ 660,000 if the new factory equipment is purchased Prepare a schedule that shows the expected net income after tages and the earnings per share on common stock under each of the plans that the board of directors is considering (f answer is zero please enter O, do not leave any fields blank, Round earnings per shore to 2 decimal places, eg: 5.253 Plan 1 Issue Bonds Plan 2 Issue Stock Income Belore interest and Taxes 5 600.000 $ 60.000 Interest Expertise Income Before Taxes Income Net Income Plan #1 Issue Bonds Plan #2 Issue Stock Income Before Interest and Taxes $ 660.000 $ 660,000 Interest Expense Income Before Taxes Income Taxes Net Income $ $ Outstanding Shares