| Onlir x 12-2 Evaluate Alternative Financing Plans Rhett Co., which produces and sells biking equipment, is financed as follows Bonds payable, 7.5% (issued at face amount) Preferred $3 stock, $20 par Common stock, $20 par $30,000,000 30,000,000 30,000,000 Income tax is estimated at 40% of income What factors other than earnings per share should be considered in evaluating alternative financing plans? a. Bonds represent a fixed annual interest requirement, while dividends on stock do not. b. Dividends reduce retained earnings. c, Bond holders exercise control over board of directors decisions. O d. Stock must be paid annual dividends. ( e. Net income is reduced by dividend expense