Assume that Ali Perry Byron Myers and Brenton Taylor of Inogen to launch a new

Assume that Ali Perry Byron Myers and Brenton Taylor of Inogen to launch a new retail chain to market their portable oxygen systems. This chain named
O-to-Go requires $500000 of start-up capital. The three contribute $375000 of personal assets in return for 15000 shares of common stock but they need to
raise another $125000 in cash. There are two alternative plans for raising the additional cash. Plan A is to sell 3750 shares of common stock to one or more
investors for $125000 cash. Plan B is to sell 1250 shares of cumulative preferred stock to one or more investors for $125000 cash (this preferred stock
would have a $100 par value an annual 8% dividend rate and be issued at par).

Analyze and interpret the differences between the results for parts 1 and 2.