VL. Electronics is considering two plans for raising $4,000,000 to expand operations. Plan A is to issue 8% bonds payable, and plan is to issue 300.000 shares of common shack. Before any new financing, VLElectronics has net income of $300,000 and 400,000 shares af common stock outstanding. Management heieves the company can use the now funds to eam additional income of $600,000 before interest and taxes. The income tax rate is 20% Analyze the VL Electronics situation to determine which plan will result in higher camings per share. (Complete answer boxes. Enter for any zera balances. Round earrings per share amounts to the nearest cent.) Plan B: Issue $4,000,000 of Common Stock Begin by completing the analysis tokiw for plan, then plan B. Plan A: Issue $4,000,000 of 8% Bonds Payable Nat income before new project Expected incorre on the new project before Interest and income tax expenses Less: Interest expense Project Income before income tax Less: Income tax expense Project nat income Net income with new project Earnings per share with new project Plan A Plan B will result in higher earnings per share