Sheridan Company is considering these two alternatives for financing the purchase of a fleet of airplanes. 1. Issue 59,500 shares of common stock at $41 per share. (Cash dividends have not been paid nor is the payment of any contemplated.) 2. Issue 15%, 10-year bonds at face value for $2,439,500. It is estimated that the company will earn $818,000 before interest and taxes as a result of this purchase. The company has an estimated tax rate of 40% and has 99,000 shares of common stock outstanding prior to the new financing. Determine the effect on net income and earnings per share for issuing stock and issuing bonds. Assume the new shares or new bonds will be outstanding for the entire year. (Round earnings per share to 2 decimal places, e. g. $2.66.)

1. alwaysrain irrigation, inc. would like to determine capacity requirements for the next four years. currently, two production lines are in place for making bronze and plastic sprinklers. three types of sprinklers are available in both bronze and plastic: 90-degree nozzle sprinklers, 180-degree nozzle sprinklers, and 360-degree nozzle sprinklers. management has forecast demand for the next four years as follows: both production lines can produce all the different types of nozzles. the bronze machines needed for the bronze sprinklers require two operators and can produce up to 12,000 sprinklers. the plastic injection molding machine needed for the plastic sprinklers requires four operators and can produce up to 200,000 sprinklers. three bronze machines and only one injection molding machine are available. what are the capacity requirements for the next four years? (assume that there is no learning.)