Question

Description For Excel Assignment #2 you will prepare an Excel spreadsheet to calculate the answer the following Exercise. Format the spreadsheet to resemble Exhibit 14-6 on page 754 of your text. Use your spreadsheet program to do the math involved or it will result in a loss of points. Remember that is the object of this assessment. Be sure to save your file with an xls or xlsx extension.

picture 1 instructions

picture 2 question

poctiure 3 is just an example of how template should look

Answer 1

Issuing Bonds Payable Versus Issuing Stock Plan 1: Issue $4000000 of 9% | Bonds Payable $3,50,000 Plan 1: Issue $4000000 of Common Stock $3,50,000 Net Income Before new project Expested Income on new project before interest and income tax expense Less: Interest Expense ($4000000 x 9%] Project Income before income tax Less: Income Tax Expense $7,00,000 $3,60,000 $3,40,000 $1,02,000 [$340000x30%] $7,00,000 SO $7,00,000 $2,10,000 [$700000x30%] $2,38,000 $5,88,000 $4,90,000 $8,40,000 Project Net Income Net Income with new project Earning per share with new project Plan 1[$588000/300000 shares] Plan 21$840000/800000 shares) $1.96 $1.05