RL Electronics is considering two plans for raising $6,000,000 to expand operations. Plan A is to issue 6% bonds payable, and plan B is to issue 300,000 shares of common stock. Before any new financing, RL Electronics has net income of $200,000 and 400.000 shares of common stock outstanding. Management believes the company can use the new funds to eam additional income of $400,000 before interest and taxes. The income tax rate is 21%. Analyze the RL Electronics situation to determine which plan will result in higher eamings per share. (Complete all answer boxes. Enter for any zero balances. Round earnings per share amounts to the nearest cent) Begin by completing the analysis below for plan A, then plan B. Plan A $5,000,000 Plan B: Issue $5,000,000 of 6% Bonds Payable of Common Stock Net income before new project 200,000 200,000 Expected income on the new project before interest and income tax expenses $ 400,000 400,000 Less Interest expense 300,000 Project income before income tax 100,000 Less Income tax expense 21.000 Project net income 400,000 4,000 79,000 316,000 1 279,000 510,000 Net income with new project Eamings per share with new project Plan A Plan B 0.70 C