ES Your answer is partially correct. Try again. Sheridan 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, 7% bonds at face value. Issue Stock Complete the following table. (Round earnings per share to 2 decimal places, e.g. 0.25.) Issue Bond Income before interest and taxes $690,000 $690,000 Interest expense (8400) Study Income before income taxes 690000 681600 x Income tax expense (25%) (172500) (170400) x Net Income 517500 511200 Outstanding shares 690000 570,000 Earnings per share .75 .90 Indicate which alternative is preferable