Alternative Financing Plans

Desmond Co$.$ is considering the following alternative financing plans:

Plan $1$

Plan $2$

Issue $10\%$ bonds $($at face value$)$

Issue preferred $$1$ stock, $$10$ par

Issue common stock, $$5$ par

$$840,000,$$$420,000$

$\backslash$table$[[$Issue $10\%$ bonds $($at face value$),$$$840,000,$$$420,000$