You need $300,000 to start a new company and you are currently analyzing 4 ways to raise the money. If you project $30,000 net income the first year, which plan would lead to the lowest return on equity (ROE) the first year?

Plan 1: The company issues $300,000 worth of stock.

Plan 2: The company issues $250,000 worth of stock and borrows the remaining amount.

Plan 3: The company issues $200,000 worth of stock and borrows the remaining amount.

Plan 4: The company issues $150,000 worth of stock and borrows the remaining amount.

Group of answer choices

a) Plan 2

b) Plan 4

c) Plan 3

d) Plan 1