a. Complete the table. (Round earnings per share to 2 decimal places, e.g. $2.66.)

b.Indicate which alternative is preferable.

Income before income taxes 1651000 1598500 Income tax expense (30%) 495300 479550 i Net income $ 1155700 $ 1118950 Outstanding shares 805000 805,000 Earnings per share 1.23 1.44 e Textbook and Media Save for Lates Attempts: 2 of 3 used Submit Answer (b) Indicate which alternative is preferable is preferable e Textbook and Media Savontate Attempts: 0 of 3 used Submit Answer Sage Hill Inc. is considering these two alternatives to finance its construction of a new $ 1.05 million plant: 1. Issuance of 105,000 shares of common stock at the market price of $10 per share. 2. Issuance of $1.05 million, 5% bonds at face value. (a) Your answer is partially correct. Complete the table. (Round earnings per share to 2 decimal places, es $2.66.) Issue Stock Issue Bonds Income before interest and taxes $1,651,000 $1,651.000 Interest expense from bonds 0 52500 Income before income taxes 1651000 188500 Income tax expense (309) 4953001 479550 Net income 1155700 1118950