You are about to form a corporation that will need $451,000 to start operations. One option (the no-debt option) for the corporation is to raise the $451,000 by selling 45,100 common shares to you. Another option (the debt option) for the corporation would be to borrow $225,500 from you at 4% and to sell you 22,550 common shares for $225,500. You expect the corporation to earn income from operations this year of $104,000 and to incur income tax at a 30% rate. You also expect total assets to remain at $451,000 throughout the year and liabilities to remain at an amount equal to the funds you lent the corporation because no new liabilities will be assumed. Furthermore, any net income will immediately be distributed to you through the payment of dividends. Consequently, retained earnings will be zero at year end. (a) Calculate the missing amounts for items [1] through [13). (Round basic earnings per share to 2 decimal places, eg. 5.24 and return on common shareholders' equity to 1 decimal place. e.g. 5.2%) No-Debt Option Debt Option Income from operations $104.000 $104,000 Interest expense (436) 0 [71 Income before income tax [1] [8] Income tax expense (30% [2] [9] Net income [3] [10] Average total assets $451,000 $451.000 $451.000 $225.500 Average common shareholders' equity 22.550 Number of common shares 45.100 $ [11] Basic earnings per share 5 Dividends declared S (3) 98151 [12] Payout ratio 9813 Return on common holders equity 5 4