Question: Division Corporation is comparing two different capital structures. Plan I would result in 3 7 , 0 0 0 shares of stock and (

Division Corporation is comparing two different capital structures. Plan I would result in 37,000 shares of stock and \(\$ 105,000\) in debt. Plan II would result in 31,000 shares of stock and \(\$ 315,000\) in debt. The interest rate on the debt is 5 percent. Assume that EBIT will be \(\$ 150,000\). An all-equity plan would result in 40,000 shares of stock outstanding. Ignore taxes. What is the price per share of equity under Plan I? Plan II?
Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g.,32.16.
Division Corporation is comparing two different

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