What is the stock price for firm

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1. A firm is considering two capital structures. Under the first structure, the firm would have 310,000 shares of stock outstanding and no debt. Under the second structure, the firm would have 180,000 shares of stock outstanding and $2.0 million of debt.

If there are no taxes, what is the stock price for this firm? Enter your answer rounded to the nearest cent

2. A firm is evaluating a project with an initial cost of $500,000. The present value of the levered cash flows is $700,000 and the net present value of the project is $300,000. Using the flow-to-equity method of valuation determine the amount borrowed.

Reference no: EM133118341

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