Zybeck Corp. projects operating income of $4 million next year.The firms income

Zybeck Corp. projects operating income of $4 million next year.The firms income tax rate is 40%. Zybeck presently has 750000shares of common stock which have a market value of $10 per shareno preferred stock and no debt. The firm is considering twoalternatives to finance a new product: (a) the issuance of $6million of 10% bonds or (b) the issuance of 60000 new shares ofcommon stock. If Zybeck issues common stock this year what willprojected EPS be next year? A. $2.33 B. $2.10 C. $2.96 D. $1.67