Capital structures-price per share of equity under plan

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Reference no: EM13943245

Cooke Co. is comparing two different capital structures. Plan I would result in 8,700 shares of stock and $323,000 in debt. Plan II would result in 12,000 shares of stock and $210,800 in debt. The interest rate on the debt is 10 percent. The all-equity plan would result in 18,200 shares of stock outstanding. Ignore taxes for this problem.

Required:

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

Price per share $

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

Price per share $

Reference no: EM13943245

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