Wavetown Marina needs to raise $1.0 million to expand the company. The company is considering issuing either $1,000,000 of 7% bonds payable to borrow the money; or 100,000 shares of common stock at $10 per share. (Click the icon to view additonal information.) Read the requirements Start by preparing the analysis to determine which plan is likely to result in higher earnings per share (EPS). (For amounts with a $0 balance, make sure to enter "0" in the appropriate colur Net income before expansion Expected project income before interest and income taxi Less Interest expense Expected project income before income tax Less: Income tax expense Expected project net income Total company net income Earnings per share after expansion Plan A Issue $1,000,000 of 7% Bonds Payable More info Before any new financing, Wavetown expects to earn net income of $400,000, and the company already has 100,000 shares of common stock outstanding. Wavetown believes the expansion will increase income before interest and income tax by $300,000. The company's income tax rate is 40%. Print Done