2. Suppose Vista Products decides to raise $10 million instead of the $5 million considered in the previous question. Vista must decide between two possible financing plans: (Assume a 21% corporate...

2.  Suppose Vista Products decides to raise $10 million instead of the $5 million considered in the previous question. Vista must decide between two possible financing plans: (Assume a 21% corporate tax rate).

 Plan A - (all equity financing)

      Vista will sell $10 million in common stock at the current market price.

      Plan B - (levered financing)

      Vista will sell $5 million in common stock at the current market price and will sell $5 million in 20-year coupon bonds. The coupon rate for these new bonds would be 8%.