Also need plan B with the common stocks

JM Electronics is considering two plans for raising $2,000,000 to expand operations. Plan A is to issue 8% bonds payable, and plan B is to issue 500,000 shares of common stock. Before any new financing, JM Electronics has net income of $150,000 and 200,000 shares of common stock outstanding. Management believes the company can use the new funds to earn additional income of $300,000 before interest and taxes. The income tax rate is 21%. Analyze the JM Electronics situation to determine which plan will result in higher earnings Begin by completing the analysis below for plan A, then plan B