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Dickson Corporation is comparing two different capital structures. Plan I would result in 12,700 shares of stock and $100,050 in debt. Plan II would result
Dickson Corporation is comparing two different capital structures. Plan I would result in 12,700 shares of stock and $100,050 in debt. Plan II would result in 9,800 shares of stock and $226,200 in debt. The interest rate on the debt is 10 percent. The all-equity plan would result in 15,000 shares of stock outstanding. Ignore taxes for this problem.
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