Question: Division Corporation is comparing two different capital structures. Plan I would result in 3 1 , 0 0 0 shares of stock and $ 9

Division Corporation is comparing two different capital structures. Plan I would result in 31,000 shares of stock and $93,000 in debt. Plan II would result in 25,000 shares of stock and $279,000 in debt. The interest rate on the debt is 7 percent. Assume that EBIT will be $120,000. An all-equity plan would result in 34,000 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.
\table[[Plan I],[Plan II]]
Division Corporation is comparing two different

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