Problem:Lin Company is considering two alternatives to

Problem:,,Lin Company is considering two alternatives to finance its purchase of a new $4,000,000 office building:,(a) Issue 400,000 shares of common stock 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 600,000 shares of common stock outstanding prior to the new financing.,,Instructions: Calculate each of the following for each alternative:,(1) Net income.,(2) Earnings per share.