Question: please show your work Problem #6 (5 marks) Florence Flooring Limited is considering two different financing plans. 1. Under plan I the interest would be

please show your work

Problem #6 (5 marks) Florence Flooring Limited is considering two different financing plans. 1. Under plan I the interest would be 8% on $100,000 face value bonds. 2. Under plan II the interest would be $10,125 with 1,400 shares of common stock outstanding. If the indifference point is $25,000 and the tax rate is 30%, how many shares of common stock are outstanding for plan 1

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