FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Kingbirl, Inc. is considering these two alternatives to finance its construction of a new $1.00 million plant: There currently are
600,000 number of shares of common stock outstanding
1
2
(a)
suance of 100.000 shares of common stock at the market price of $10 per share
Issuance of $1.00 million, 5% bonds at face value
Complete the table (Round earnings per share to 2 decimal places, eg. $2.66)
Issue Stock
Income before interest and taxes
Interest expense from bonds
Income before income taxes
Income tax expere (30%)
Net income
Outstanding shares
Earnings per share
eTextbook and Media
Le for Late
$1,500,000
$
Issue Bonds
$1,500,000
Attempts: 0 of 3 used Ar
(b)
The parts of this question must be completed in order. This part will be available when you complete the part above.
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Transcribed Image Text:Kingbirl, Inc. is considering these two alternatives to finance its construction of a new $1.00 million plant: There currently are 600,000 number of shares of common stock outstanding 1 2 (a) suance of 100.000 shares of common stock at the market price of $10 per share Issuance of $1.00 million, 5% bonds at face value Complete the table (Round earnings per share to 2 decimal places, eg. $2.66) Issue Stock Income before interest and taxes Interest expense from bonds Income before income taxes Income tax expere (30%) Net income Outstanding shares Earnings per share eTextbook and Media Le for Late $1,500,000 $ Issue Bonds $1,500,000 Attempts: 0 of 3 used Ar (b) The parts of this question must be completed in order. This part will be available when you complete the part above.
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