Three plans for financing a ¥25,000,000 corporation are under consideration by its organizers. Under each of the following plans, the securities will be issued at their par or face amount and the income tax rate is estimated at 30%. 
It is estimated that income before interest and taxes will be ¥5,000,000.
Instructions
Determine for each plan, the expected net income and the earnings per share.
Definitions:
Tacit Knowledge
Practical “how-to” knowledge accumulated from everyday experience.
Practical Intelligence
The ability to solve everyday problems through the use of experience-based knowledge, often distinguished from academic or theoretical intelligence.
Analytic Intelligence
Analytic intelligence involves the ability to analyze, evaluate, judge, compare, and contrast situations, part of the triarchic theory of intelligence proposed by Robert Sternberg.
Creative Intelligence
The ability to go beyond the existing to create novel and interesting ideas, ways of thinking, or solutions to problems.
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