*Exercise 152 Your answer is partially correct. Try again. Gilliland Airlines is considering two alternatives for the nancing of purchase of a eet of airplanes. These two alternatives are: 1. Issue 87,000 shares of common stock at $30 per share. (Cash dividends have not been paid nor is the payment of any contemplated.) 1. Issue 6%, 10wyear bonds at face value for $2,610,000. It is estimated that the company will earn $820,000 before interest and taxes as a result of this purchase. The company has an estimated tax rate of 30% and has 101,300 shares of common stock outstanding prior to the newI nancing. Determine the effect on net income and earnings per share for these two methods of financing. (Round earnings per share to 2 decimal places, 2.9. 2.25.) Netlncome 74,000 $ 746,000 E $ Earnings per share IE