https://firstgrader.net/wp-content/uploads/2020/04/logo-300x75.png 0 0 Will Smith https://firstgrader.net/wp-content/uploads/2020/04/logo-300x75.png Will Smith2020-11-18 16:49:572020-11-18 16:50:29price 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?