=+/ 1. Plan 3: $10.64 Three different plans for financing a $30,000,000 corporation are under consideration by its organizers. Under each ofthe following plans, the securities will be issued at their par or face amount, and the income tax rate is estimated at 40% ofincome.

8% bonds Preferred $2 stock, $50 par Common stock, $10 par Total Plan 1

$40,000,000

$40,000,000 Plan 2

$20,000,000 20,000,000

$40,000,000 Plan 3

$20,000,000 10,000,000 10,000,000

$40,000,000 Instructions