Question

I need some help with some accounting homework is anyone available?

Answer 1

i will try if i can ;)

Answer 2

Mareska Inc. is considering two alternatives to finance its construction of a new $2 million plant.
Issuance of 200,000 shares of common stock at the market price of $10 per share.

Issuance of $2 million, 8% bonds at par.

Complete the following table. (If answer is zero, please enter 0. Do not leave any fields blank. Round earnings per share to 2 decimal places, e.g. 10.50.)

Issue Stock Issue Bond
Income before interest and taxes $700,000 $700,000
Interest expense from bonds




Income before income taxes
Income tax expense (30%)




Net income

$


$


Outstanding shares



500,000


Earnings per share

$


$