ACCOUNTING-Moby Inc. is considering two alternatives to finance its construction

QUESTION

Moby Inc. is considering two alternatives to finance its construction of a new $1.40 million plant.(a)Issuance of 140,000 shares of common stock at the market price of $10 per share.(b)Issuance of $1.40 million, 8% bonds at face value.Complete the following table.(Round earnings per share to 2 decimal places, e.g. 0.25.)Issue StockIssue BondIncome before interest and taxes$793,300$793,300Interest expense from bondsIncome before income taxesIncome tax expense (35%)Net income$$Outstanding shares653,300Earnings per share$$

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