申論題

題組 D - 請依據下列資料回答第 9 至 11 題：
Banks Company is considering two alternatives to finance its purchase of a new $4,000,000 office building.
a. Issue 400,000 ordinary shares at $10 per share.
b. Issue 8%, 10-year bonds at par ($4,000,000).
Income before interest and taxes is expected to be $3,000,000. The company has a 30% tax rate and has 800,000 ordinary shares outstanding prior to the new financing.
INSTRUCTIONS: (總金額計算至整數位，EPS 計算至小數二位。)

10. Calculate net income and earnings per share (EPS), if the company chooses alternative b.