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Chapter 15 Case 2:Business is going well for Email Designers. The board of directors of this family-owned company believes that Email Designers could earn $1,000,000 income before interest and taxes by expanding into new markets. However, the $4,000,000 the business needs for growth cannot be raised within the family. The directors, sho strongly wish to retain family control of the company, must issue securities to outsiders. They are considering three financial plans. Plan A is to borrow at 6%. Plan B is to issue 100,000 shares of common stock. Plan C is to issue 100,000 shares of nonvoting, $2.50 preferred stock. Email Designers Currentlyhas a net income of $1,200,000 and 400,000 shares of common stock outstanding. The company’s income tax is 40%.Recommend one plan to the board of directors and give your reasoning. The first part of this problem has to be set up as a table with plan A,B,C
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