Problem $13-5$ M&M and Stock Value $[$LO$1]$

Foundation, Incorporated, is comparing two different capital structures, an all$-$equity plan $($Plan I$)$ and a levered plan $($Plan II$).$ Under Plan $!,$ the company would have $200,000$ shares of stock outstanding. Under Plan $11,$ there would be $115,000$ shares of stock outstanding and $$1\mathrm{.}75$ million in debt outstanding. The interest rate on the debt is $8$ percent and there are no taxes.

a$.$ Use M&M Proposition $1$ to find the price per share.

Note: Do not round intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$

b$.$ What is the value of the firm under each of the two proposed plans?

Note: Do not round intermediate calculations and round your answers to the nearest whole number, e$.$g$.,32.$

$\backslash$table$[[$a$.$ Share price,$],[$b$.$ All$-$equity firm value,$],[$Levered plan firm value,$]]$M