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Dickson Corporation is comparing two different capital structures. Plan I would result in 27,000 shares of stock and $87,000 in debt. Plan II would result
Dickson Corporation is comparing two different capital structures. Plan I would result in 27,000 shares of stock and $87,000 in debt. Plan II would result in 21,000 shares of stock and $261,000 in debt. The interest rate on the debt is 7 percent. Assume that EBIT will be $100,000. An all-equity plan would result in 30,000 shares of stock outstanding. Ignore taxes. What is the price per share of equity under Plan I? Plan II? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.
\begin{tabular}{l|l|} \hline Plan I & \\ \hline Plan II & \\ \hline \end{tabular}
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