Question: AF Electronics is considering two plans for raising $ 5 , 0 0 0 , 0 0 0 to expand operations. Plan A is to

AF Electronics is considering two plans for raising $5,000,000 to expand
AF Electronics is considering two plans for raising $5,000,000 to expand operations. Plan A is to issue 7% bonds payable, and plan B is to issue 100,000 shares of common stock. Before any new financing, AF Electronics has net income of $200,000 and 600,000 shares of common stock outstanding. Management believes the company can use the new funds to earn additional income of $400,000 before interest and taxes. The income tax rate is 21%. Analyze the AF Electronics situation to determine which plan will result in higher earnings per share. (Complete all answer boxes. Enter "0" for any zero balances. Round earnings per share amounts to the nearest cent.)
Begin by completing the analysis below for plan A, then plan B.
\table[[,\table[[Plan A: Issue $5,000,000
operations. Plan A is to issue 7% bonds payable, and plan B

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