Question: Dickson corporation is comparing two different capital structures. Plan 1 would result in 7 5 0 0 shares of stock and $ 1 0 0

Dickson corporation is comparing two different capital structures. Plan 1 would result in 7500 shares of stock and $100000 in debt. Plan 2 would result in 6600 shares of stock and $120000 in debt. The interest rate on debt is 6 percent. Assume that EBIT will be $50000. An all equity plan would result in 12,000 shares of stock outstanding. Ignoring taxes, what is the price per share of equity under plan 1? Plan 2?

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