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Byrd Corporation is comparing two different capital structures, an all-equity plan (Plan I) and a levered plan (Plan l). Under Plan I, the company would

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Byrd Corporation is comparing two different capital structures, an all-equity plan (Plan I) and a levered plan (Plan l). Under Plan I, the company would have 185,000 shares of stock outstanding. Under Plan lI, there would be 135,000 shares of stock outstanding and $2.29 million in debt outstanding. The interest rate on the debt is 5 percent and there are no taxes. a. Use MM Proposition to find the price per share. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the value of the firm under each of the two proposed plans? ((Do not round intermediate calculations and enter your answers in dollars, not millions of dollars rounded to the nearest whole number, e.g., 1,234,567.) a. Share price b. All equity plan Levered plan

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