Question: Destin Corp. is comparing two different capital structures. Plan I would result in 12,000 shares of stock and $120,000 in debt. Plan II would result

Destin Corp. is comparing two different capital structures. Plan I would result in 12,000 shares of stock and $120,000 in debt. Plan II would result in 11,500 shares of stock and $140,000 in debt. The interest rate on the debt is 6 percent. Assume that EBIT will be $70,000. An all-equity plan would result in 15,000 shares of stock outstanding. Ignore taxes.

Destin Corp. is comparing two different capital structures. Plan I would result What is the price per share of equity under Plan I? Plan II?

UPDATE: I have one more check left only. Every answer so far has been wrong.

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