Marin Inc.currently has 620,000 shares of common stock outstanding. Marin Inc. is considering these two alternatives to finance its construction of a new $1.20 million plant:

1.Issuance of 120,000 shares of common stock at the market price of $10 per share.2.Issuance of $1.20 million, 8% bonds at face value.

Complete the table. (Round earnings per share to 2 decimal places, e.g. $2.66.)

Issue Stock

Issue Bonds

Income before interest and taxes$1,520,000$1,520,000Interest expense from bonds

Income before income taxes

Income tax expense (35%)

Net income$

$

Outstanding shares

620,000

Earnings per share$

$