AG Electronics is considering two plans for raising $2,000,000 any new financing, AG Electronics has net income of $300,000 and 700,000 shares of common stock outstanding. Management believes the company can use the new funds to earn additional income of $600,000 before interest and taxes. The income tax rate is 20%. Analyze the AG Electronics situation (Complete all answer boxes. Enter "0" for any zero balances. Round eamings per share amounts to the nearest cent.) expand operations. Plan A is to issue 9% bonds payable, and plan B is to issue 100,000 shares f common stock. Before determine which plan will result in higher eamings per share. Begin by completing the analysis below for plan A, then plan B. Plan A: Issue $2,000,000 of 9% Bonds Payable Net income before new project Expected income on the new project before interest and income tax expenses Less: Interest expense Project income before income tax Less: Income tax expense Project net income Net income with new project AG Electronics is considering two plans for raising $2,000,000 to expand operations. Plan A is to issue 9% bonds payable, and plan B is to issue 100,000 shares of common stock. Before any new financing, AG Electronics has net income of $300,000 and 700,000 shares additional income of $600,000 before interest and taxes. The income tax rate is 20%. Analyze the AG 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.) f common stock outstanding. Management believes the company can use the new funds earn Net income before new project Expected income on the new project before interest and income tax expenses Less: Interest expense Project income before income tax Less: Income tax expense Project net income income with new project Earnings per share with new project: Plan A Plan B