M&M and Equity Value Jour de Pluie SA is comparing two different capital structures, an all-equity plan (Plan I)

and a levered plan (Plan II). Under Plan I, Jour de Pluie would have 100,000 shares of equity outstanding. Under Plan II, there would be 50,000 shares of equity outstanding and €1 million in debt outstanding. The interest rate on the debt is 10 per cent and there are no taxes. Use M&M Proposition I to find the share price under each of the two proposed plans. What is the value of the firm?