Shares of common stock at the market price

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Reference no: EM131260942

Fugate Inc. is considering these two alternatives to finance its construction of a new $2,565,000 plant: 1. Issuance of 256,500 shares of common stock at the market price of $10 per share. 2. Issuance of $2,565,000, 8% bonds at face value. Complete the table. (Round earnings per share to 2 decimal places, e.g. $2.66.) Issue Stock Issue Bond Income before interest and taxes $1,548,000 $1,548,000 Interest expense from bonds Income before income taxes Income tax expense (40%) Net income $ $ Outstanding shares 632,300 Earnings per share $ $

Reference no: EM131260942

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Shares of common stock at the market price : Fugate Inc. is considering these two alternatives to finance its construction of a new $2,565,000 plant: 1. Issuance of 256,500 shares of common stock at the market price of $10 per share.

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