comparing two different capital structures, an all$-$equity plan $($Plan I$)$ and a levered plan $($Plan II$).$ Under Plan I, the company would have $190,000$ shares of stock outstanding. Under Plan II$,$ there would be $140,000$ shares of stock outstanding and $$2\mathrm{.}8$ million in debt outstanding. The interest rate on the debt is $6$ percent and there are no taxes.