What's the answer to this

Natertown inc. needs to raise $1,000,000 to expand the company. Whtertown he is considering the issuance of either: 1. $1,000,000 of 7% bonds payable at par to borrow the moner, or 2. 100,000 shares of common stock issued at $10 per share. Before any new financing, Watertown Inc, expects to eamn net income of 4000000 , and the company already has 100,000 shares of common stock outsanding. Wastotoinl he beicic te expansion will increase income before interest and income tax by 5100,000 . The rcone ar a att is 30%. Which choice of raising capital should Watertown hic use it they are cancened with earnings per share? Watertown Inc should borrow the money by issuing bonds garble incet wil reat hn anieg y share of $3.50. share of $3.01. of $3.50. Watertown Inc should issue 100,000 shares of common tod sice thilsstinazeriris so sat