Four individuals have agreed to begin a new business that will require a total investment of \(\$ 2\) million. Each of the four will contribute \(\$ 300,000\), and the remaining \(\$ 800,000\) will be raised from other investors. Two alternative plans for raising the money are being considered: (1) issue \(\$ 100\) par value common stock to all investors, or (2) issue \(\$ 100\) par value common stock to the four founders and \(\$ 100\) par value, \(9 \%\) preferred stock to the remaining investors. In either case, all of the shares will be issued at par. If the business is expected to earn an after-tax net income of \(\$ 250,000\), which of the two plans will provide the highest return to the four founders? What rate of return will the founders earn under each alternative?