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Required information (The following information applies to the questions displayed below.) Penny Arcades, Inc., is...

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Required information (The following information applies to the questions displayed below.) Penny Arcades, Inc., is trying to decide between the following two alternatives to finance its new $17 million gaming center: a. Issue $17 million, 6% note. b. Issue 1 million shares of common stock for $17 per share. Required: 1. Assuming the note or shares of stock are issued at the beginning of the year, complete the income statement for each alternative (Enter your answers in dollars, not millions. (l.e., $5.5 million should be entered as 5,500,000). Round your "Earnings per Share to 2 decimal places.) Issue Note Issue Stock $ 9,200,000 $9.200,000 Operating incomo Interest expense (noto only) Income before tax Income tax expense (30%) Net Income Number of shares Earnings por share (Net incomo /of shares) 2,200,000 3,200,000 Prey CO 1 2 of 18 Next >

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