Question: Cooke Co. is comparing two different capital structures. Plan I would result in 8,500 shares of stock and $361,000 in debt. Plan I would result

Cooke Co. is comparing two different capital structures. Plan I would

Cooke Co. is comparing two different capital structures. Plan I would result in 8,500 shares of stock and $361,000 in debt. Plan I would result in 12,000 shares of stock and $228,000 in debt. The interest rate on the debt is 10 percent. The all-equity plan would result in 18,000 shares of stock outstanding. Ignore taxes for this problem. Required (a) What is the price per share of equity under Plan 1? Price per share What is the price per share of equity under Plan l17 Price per share (b)

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