Question: Dickson Corporation is comparing two different capital structures. Plan I would result in 28,000 shares of stock and $88,500 in debt. Plan II would result

Dickson Corporation is comparing two different capital structures. Plan I would result in 28,000 shares of stock and $88,500 in debt. Plan II would result in 22,000 shares of stock and $265,500 in debt. The interest rate on the debt is 4 percent. Assume that EBIT will be $105,000. An all-equity plan would result in 31,000 shares of stock outstanding. Ignore taxes. What is the price per share of equity under Plan 1? Plan ||? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) X Answer is complete but not entirely correct. Plan $ | 3.62 Plan II $ 4.29 X
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