ii. Jackson Corporation is planning a $200,000 expansion to meet increasing demand for its product. Jackson Corporation is considering two plans to raise the money. Under Plan A, bonds with a contract rate of interest of 8% would be issued. Under Plan B, 10,000 additional ordinary shares would be issued at $20 per share. The corporation currently has 100,000 shares outstanding, and it expects to earn $300,000 per year before bond interest and income taxes. The net profit and return on investment for both plans is shown below:

	Plan A	Plan B
Earnings before bond interest and taxes	$ 300,000	$ 300,000
Bond interest expense	(16,000)
Income before taxes	$ 284,000	$ 300,000
Income taxes	(99,400)	(105,000)
Net profit	$ 184,600	$ 195,000
Equity	$2,000,000	$2,200,000
Return on Equity	9.23%	8.86%

Required: Please compare the above two plans to raise the money.