3 4 points Foundation, Incorporated, is comparing two different capital structures, an all-equity plan (Plan I)...

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3 4 points Foundation, Incorporated, is comparing two different capital structures, an all-equity plan (Plan I) and a levered plan (Plan II). Under Plan I, the company would have 170,000 shares of stock outstanding. Under Plan II, there would be 120,000 shares of stock outstanding and $2.21 million in debt outstanding. The interest rate on the debt is 7 percent, and there are no taxes. a. Use M&M Proposition I to find the price per share. Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. What is the value of the firm under each of the two proposed plans? Note: Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32. Answer is complete but not entirely correct. a. Share price $ 39.00 b. All-equity firm value $ 8,040,000 x Levered plan firm value $ 8,040,000 3 4 points Foundation, Incorporated, is comparing two different capital structures, an all-equity plan (Plan I) and a levered plan (Plan II). Under Plan I, the company would have 170,000 shares of stock outstanding. Under Plan II, there would be 120,000 shares of stock outstanding and $2.21 million in debt outstanding. The interest rate on the debt is 7 percent, and there are no taxes. a. Use M&M Proposition I to find the price per share. Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. b. What is the value of the firm under each of the two proposed plans? Note: Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32. Answer is complete but not entirely correct. a. Share price $ 39.00 b. All-equity firm value $ 8,040,000 x Levered plan firm value $ 8,040,000