Question: Firm A and firm B have the same expected returns, but different methods of financing. Firm A has taken on debt in t = 0

Firm A and firm B have the same expected returns, but different methods of financing. Firm A has taken on debt in t = 0 and has to pay back 14071004.226563 in t = 7. Firm A has also issued 100000 shares in t = 0.

Firm B has no debt, but has issued 200000 shares. Each share of firm B cost $120 when issued in t = 0.

The annual interest rate is 5%.

How much did one share of firm A cost when it was issued?

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