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Dickson Corporation is comparing two different capital structures. Plan I would result in 3 8 , 0 0 0 shares of stock and $ 1

Dickson Corporation is comparing two different capital structures. Plan I would result in 38,000 shares of stock and $106,500 in debt. Plan II would result in 32,000 shares of stock and $319,500 in debt. The interest rate on the debt is 6 percent. Assume that EBIT will be $155,000. An all-equity plan would result in 41,000 shares of stock outstanding. Ignore taxes. What is the price per share of equity under Plan I? Plan II?

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