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is considering two plans for raising $4,000,000 to expand operations. Plan A is to issue...

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Accounting

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is considering two plans for raising $4,000,000 to expand operations. Plan A is to issue 8% bonds payable, and plan B is to issue 100,000 shares of common stock. Before any new financing, CL Electronics has net income of $450,000 and 400,000 shares of common stock outstanding. Management believes the company can use the new funds to earn additional income of $900,000 before interest and taxes. The income tax rate is 21%. Analyze the CL. Electronics situation to determine which plan will result in higher earnings per share. (Complete all answer boxes. Enter " 0 " for any zero balances. Round earnings per share amounts to the nearest cent.)

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