Question: Cooke Co. is comparing two different capital structures. Plan I would result in 11,000 shares of stock and $370,000 in debt. Plan II would result

Cooke Co. is comparing two different capital structures. Plan I would result in 11,000 shares of stock and $370,000 in debt. Plan II would result in 12,100 shares of stock and $329,300 in debt. The interest rate on the debt is 10 percent. The all-equity plan would result in 21,000 shares of stock outstanding. Ignore taxes for this problem.

Required:

(a)	What is the price per share of equity under Plan I?

Price per share

(b)	What is the price per share of equity under Plan II?

Price per share

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