In Problem 4, use MM Proposition I to find the price per share of equity under each of the two proposed plans. What is the value of the firm?

Data from Problem 4

Kuchar Corporation 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 125,000 shares of stock outstanding. Under Plan II, there would be 90,000 shares of stock outstanding and $1,197,000 in debt outstanding. The interest rate on the debt is 7 percent and there are no taxes.