Find the price per share of equity under given plans

Reference no: EM131980996

Question: Haskell Corp. is comparing two different capital structures. Plan I would result in 18,000 shares of stock and $95,000 in debt. Plan II would result in 14,000 shares of stock and $190,000 in debt. The interest rate on the debt is 5 percent. Assume that EBIT will be $90,000. An all-equity plan would result in 22,000 shares of stock outstanding. Ignore taxes. What is the price per share of equity under Plan I? Plan II?

Plan I______$ per share

Plan II _____$ per share

Reference no: EM131980996

Questions Cloud

At what price would bonds sell : Two years after the bonds were issued, the going rate of interest on bonds such as these fell to 6%. At what price would the bonds sell?

Treasury resource center for interest rates reports : On January 17, 2018, the U.S. Treasury Resource Center for interest rates reports the following current (spot) Treasury bond rates:

Insurance premiums are often too high and not worth money : People think that insurance premiums are often too high and not worth the money, however,

Credit card finance charges : Troy made a payment of ?$238 What will the total of? Troy's new balance be on his credit card? statement, taking into account finance? charges?

Find the price per share of equity under given plans : Haskell Corp. is comparing two different capital structures. Plan I would result in 18,000 shares of stock and $95,000 in debt.

Estimate of the nominal interest rate on new bonds : what is the best estimate of the nominal interest rate on new bonds?

Initial investment in fixed assets when evaluating project : What is the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project?

How much money can make via triangular arbitrage : A hedge fund manager has $5,000,000 to invest in the foreign currency market. The dollar-euro exchange rate is quoted as $1.1/€ and the dollar-pound exchange.

Calculate accounting break-even point : Calculate the accounting Break-even point. The tax rate is 40% and the WACC applicable to the project is 15%.

User Account

All Pages