Hebook ORION Downloadable eTextbook CALCULATOR FULL SCREEN PRINTER VERSION Blossom Inc. is considering two alternatives...
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Hebook ORION Downloadable eTextbook CALCULATOR FULL SCREEN PRINTER VERSION Blossom Inc. is considering two alternatives to finance its construction of a new $2.10 million plant. 4 (a) Issuance of 210,000 shares of common stock at the market price of $10 per share. (b) Issuance of $2,100,000, 7% bonds at face value. Complete the following table. (Round earnings per share to 2 decimal places, e.g. 0.25.) Issue Stock Issue Bond Income before interest and taxes $760,000 $760,000 Interest expense T 126000 Income before income taxes T 760000 -0-0 634000 Income tax expense (25%) Net income 190000 158500 570000] SL32500l Outstanding shares 700.000 550.000 Earnings per share 16.92 Indicate which alternative is preferable
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