Dammer Corporation Wants to Raise $2,000,000

Dammer Corporation wants to raise $2,000,000.The corporation plans to sell 7%,10-year bonds at the face value of $2,000,000.Dammer Corporation currently has 150,000 shares of stock outstanding and net income of $1,500,000.The $2,000,000 from the bond sale is expected to generate additional income of $500,000 before interest and taxes.The income tax rate is 30%.What are the earnings per share after the sale of bonds?

A) $10.00
B) $11.68
C) $12.33
D) $12.40