Question: Plan 1 Plan 2 Interest Expense $25,000 $50,000 Preferred Dividend $3,000 $1,500 Common Shares Outstanding 200,000 100,000 Which plan has a higher degree of financial

Plan 1 Plan 2 Interest Expense $25,000 $50,000 Preferred Dividend $3,000 $1,500 Common Shares Outstanding 200,000 100,000

Which plan has a higher degree of financial leverage and financial risk?

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