Marin Inccurrently has 620,000 shares of common stock outstanding Marin Inc is considering these two

Marin Inccurrently has 620,000 shares of common stock outstanding Marin Inc is considering these two

Marin Inccurrently has 620,000 shares of common stock outstanding Marin Inc is considering these two alternatives to finance its construction of a new $120 million plant:

1Issuance of 120,000 shares of common stock at the market price of $10 per share2Issuance of $120 million, 8% bonds at face value

Complete the table (Round earnings per share to 2 decimal places, eg $266)

Issue Stock

Issue Bonds

Income before interest and taxes$1,520,000$1,520,000Interest expense from bonds

Income before income taxes

Income tax expense (35%)

Net income$

$

Outstanding shares

620,000

Earnings per share$

$

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