Question: Division Corporation is comparing two different capital structures. Plan I would result in 3 5 , 0 0 0 shares of stock and $ 1

Division Corporation is comparing two different capital structures. Plan I would result in 35,000 shares of stock and $100,500 in debt. Plan II would result in 29,000 shares of stock and $301,500 in debt. The interest rate on the debt is 7 percent. Assume that EBIT will be $140,000. An all-equity plan would result in 38,000 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.

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