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.
Pic 1- Instructions

Pic 2- QUESTION

Pic 3- Template Example

Answer 1

	Plan A: Issue 9% bonds Payable		Plan B: Issue 500000 shares of Common stock
					Net Income before new project		$350,000		$350,000
Expected income from new project before interest and income tax expenses	$700,000		$700,000
Less: Interest Expenses ($4000,000 X 0.09)	$360,000		0
Project income before income tax	$340,000		$700,000
Less: Income tax expenses (30%)	$102,000		$210,000
Project net income		$238,000		$490,000
Net Income with new project		$588,000		$840,000
Earning per share with new project:
Plan A: ($588,000/300,000 Shares)		$1.96
Plan B: ($840,000/800,000 Shares)				$1.05