Question: please show ALL WORK and make sure correct. I will give thumbs up Problem 4 (18 Points) Tumer Inc. is considering two alternatives to finance
Problem 4 (18 Points) Tumer Inc. is considering two alternatives to finance its construction of a new $5 million plant. (a) Issuance of 500,000 shares of common stock at the market price of $10 per share (b) Issuance of $5 million, 6% bonds at par Instructions Complete the following table. You MUST show your work to receive full credit. Issue Stock Issue Bonds Income before interest and taxes $4,000,000 $4,000,000 Interest expense from bonds $ $ Income before income taxes Income tax expense (40%) Net income 800.000 Outstanding shares Earnings per share
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