Eagle Corp. needs to raise $500,000 to expand the company. …

Eаgle Cоrp. needs tо rаise $500,000 tо expаnd the company.  Eagle Corp. is considering the issuance of either:   $500,000 of 8% bonds payable at par to borrow the money; or 50,000 shares of common stock issued at $10 per share.   Before any new financing, Eagle Corp. expects to earn net income of $300,000, and the company already has 100,000 shares of common stock outstanding.  Eagle Corp. believes the expansion will increase income before interest and income tax by $100,000.  The income tax rate is 30%.  Which choice of raising capital should Eagle Corp. use if they are concerned with earnings per share? You must use the honorlock calculator to solve the problem. (round to the nearest penny).