Stock: It refers to a security issued in a form of certificate. It implies the right of ownership of an investor over a portion of company’s earnings and assets. Bond : It is a long-term liability issued by a company to the investors for which the company pays interest as a return of their investment. To determine: the effect on net income and earnings per share for issuing stock and issuing bonds for B Airlines.

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Chapter 11, Problem 11.14E

To determine

Stock: It refers to a security issued in a form of certificate. It implies the right of ownership of an investor over a portion of company’s earnings and assets.

Bond: It is a long-term liability issued by a company to the investors for which the company pays interest as a return of their investment.

To determine: the effect on net income and earnings per share for issuing stock and issuing bonds for B Airlines.

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