What is the price per share of equity under plan

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Reference no: EM13943748

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. 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: EM13943748

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What is the price per share of equity under plan : 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-equit..

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