Question: 2. Coco corporation is comparing two different capital structures, an all -equity plan (plan 1) and a levered plan ( plan 2). Under plan 1,

2. Coco corporation is comparing two different capital structures, an all -equity plan (plan 1) and a levered plan ( plan 2). Under plan 1, the company would have 185,000 shares of stock outstanding . Under plan 2 there would be 135,000 shares of stock outstanding and 2.29 million in debt outstanding . The interest rate on the debt is 5% and there are no taxes.

A. Use MM proposition 1 to find the price per share ( do not round intermediate calculations and round answer to 2 decimal places )

Share price = $__

B. What is the value of the firm under each of the two proposed plans ? ( enter your answers in dollars , not millions of dollars . Do not round intemediate calculations , round your answers to the nearest whole numbers )

All equity plan = $___

Levered plan = $____

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