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

Zybeck Corp. projects operating income of $4 millionnext year. The firms income tax rate is 40%. Zybeck presently has750000 shares of common stock which have a market value of $10 pershare no 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?