A company has $1$ million common shares, a total share capital of $10$ million yuan, and a company bond of $6$ million yuan $($an annual interest rate of $12\%).$ The company plans to expand the scale of financing. There are two options: one is to issue an additional $500,000$ common shares, with an issue price of $15$ yuan per share; the other is to issue $7\mathrm{.}5$ million bonds at an affordable price. The annual interest rate of corporate bonds is $12\%,$ and the income tax rate is $30\%.$

Requirements:$$

$(1)$ Calculate that there is no difference in the profit per share under the two financing methods.$$

$(2)$ When the company's expected profit before interest and tax is $4$ million yuan and $2$ million yuan respectively, it will make a choice for the two financing plans $($and draw a picture$).$ 

Answer rating: 100% (QA)

Calculation of Profit per Share under Two Financing Methods Given data Initial common shares 1 million Total share capital 10 million yuan Company bon... View the full answer