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Rustic Campsites, Incorporated, is trying to decide between the following two alternatives to finance its new 519 million gaming center a. Issue 519 million, 7% note Issue 1 million shares of common stock for $19 per share with expected annual dividends of $133 per share. Required: 1. Assuming the note or shares of stock are issued the beginning of the year, complete the income statement for each alternative 2. Answer the following questions for the current year (a) By how much are interest payments higher if issuing the note? (b) By how much are dividend payments higher by issuing stock? (c) Which alternative results in higher earnings per share? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Answer the following questions for the current year: (a) By how much are interest payments higher if issuing the note? (b) By how much are dividend payments higher by issuing stock? (c) Which alternative results in higher earnings per share? (Enter your answers in dollars, not millions (le, $5.5 million should be entered as 5,500,000).) Show less a. By how much are interest payments higher it issuing the note? b. By how much are dividend payments higher by issuing stock? c Which alternative results in higher earnings per share? Issue

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