30. (16 min.)

                                                                            Plan #1           Plan #2

                                                                        Issue Bonds    Issue Stock

                                         

     Income before interest taxes                       $800,000         $800,000

     Interest expense ($4,000,000 x 9%)            360,000              ——                                   

                                           

     Income before taxes                                    440,000            800,000

     Income taxes (30%)                                    132,000            240,000        

                                

     Net income                                                 $308,000         $560,000

                                                   

     Outstanding shares                                      100,000            300,000        

                                                   

     Earnings per share                                         $3.08                 $1.87