** # 3 2 44 02 Preferred Stock Common Stock Paid-in Capital in Excess of Par Value-Preferred Stock Paid-in Capital in Excess of Stated Value-Common Stock 55 W E R T S Retained Earnings 66 99 & 7 8 .00 YU 6 D F G H J K X C V B N M * N 2 NO 3 W 13 On 1 20 Question of 6 Cument At P shea 13 NO "U 4 * 10 A 10 6 40 B 9 E R T Y U 1 0 P a S D F G H J K L x X command C < B N M " v comman 05/21 Question 4 of 6 2 Issue 55,500 shares of common stock at $46 per share. Ch dividends have not been paid nor is the payment of any contemplated hue 13%, 15-year bonds at face value for $2.553.000 It is estimated that the company will earn $830.000 before interest and toes as a result of this purchase. The company has an estimated tax rate of 40% and has 95.000 shares of common stock outstanding prior to the new financing Determine the effect on net income and earnings per share for issuing stock and issuing bonds. Assume the new shares or new bonds will be outstanding for the entire year Round earnings per share to 2 decimal places, 3 $2.66) eTextbook and Media Plan One Issue Stock 3 4 5 % 25 6 mall 47 Plan Two Bonds V E R T Y U x D F 8 +98 1 Assistance Useit G H J K C V B N M 41 -0