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The board of directors of Wildhorse Corporation is considering two plans for financing the purchase of new plant equipment. Plan #1 would require the issuance

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The board of directors of Wildhorse Corporation is considering two plans for financing the purchase of new plant equipment. Plan #1 would require the issuance of $5,390,000,8%, 20-year bonds at face value. Plan #2 would require the issuance of 210,000 shares of $5 par value common stock that is selling for $25 per share on the open market. Wildhorse Corporation currently has 150.000 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 $600.000 f the new factory equipment is purchased. Prepare a schedule that shows the expected net income after taves and the earnings per share on common stock under each of the plans that the board of directors is considering of answer is zero please enter 0, do not leave any fields blonk. Round earnings per share to 2 decimal places, eg. 5.25) Plan 1 Issue Bonds Plan #2 Issue Stock Income Before Internet and Toes $ 600.000 $ 200.000 Interest Expense O Income Before Interest and TV Income Taxes Net Income Outstanding Shares Earnings Por Shoe

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