Question: Dickson Corporation is comparing two different capital structures. Plan I would result in 36,000 shares of stock and $103,500 in debt. Plan 11 would result
Dickson Corporation is comparing two different capital structures. Plan I would result in 36,000 shares of stock and $103,500 in debt. Plan 11 would result in 30,000 shares of stock and $310,500 in debt. The interest rate on the debt is 4 percent. Assume that EBIT will be $145,000. An all-equity plan would result in 39,000 shares of stock outstanding. Ignore taxes. What is the price per share of equity under Plan 1? Plan II? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.9., 32.16
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