=+Problems Series B Three different plans for financing a $60,000,000 corporation are under consideration by its organizers. Under each of the following plans, the securities will be issued at their par or face amount, and the income tax rate is estimated at 40% of income.

Plan 1 Plan 2 Plan 3 12% bonds — — $40,000,000 Preferred $2 stock, $20 par $30,000,000 10,000,000 Common stock, $10 par $60,000,000 30,000,000 10,000,000 ___________ ___________ ___________ Total $60,000,000 $60,000,000 $60,000,000 ___________ ___________ ___________ ___________ ___________ ___________