Current Attempt in Progress Crane Inc. is considering two alternatives to finance its construction of a new $1.20 million plant. (a) Issuance of 120,000 shares of common stock at the market price of $10 per share. (b) Issuance of $1,200,000, 8% bonds at face value. Complete the following table. (Round earnings per share to 2 decimal places, e.g. 0.25.) Issue Stock Income before interest and taxes $670,000 Interest expense Income before income taxes Income tax expense (35%) Net income Outstanding shares Earnings per share $ Indicate which alternative is preferable. Net income is Issue Bond $670,000 550,000 if stock is used. However, earnings per share is than earnings per share if bonds are used because of the additional shares of stock that are outstanding. eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer