price per share of equity under Plan II

Cooke Co. is comparing two different capital structures. Plan I would result in 8,500 shares of stock and $448,500 in debt. Plan II would result in 12,000 shares of stock and $312,000 in debt. The interest rate on the debt is 9 percent. The all-equity plan would result in 20,000 shares of stock outstanding. Ignore taxes for this problem.

 

What is the price per share of equity under Plan I?

 

What is the price per share of equity under Plan II?

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