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Foundation, Incorporated, is comparing two different capital structures, an all - equity plan ( Plan I ) and a levered plan ( Plan II )
Foundation, Incorporated, is comparing two different capital structures, an allequity plan Plan I and a levered plan Plan II Under Plan I, the company would have shares of stock outstanding. Under Plan II there would be shares of stock outstanding and $ in debt outstanding. The interest rate on the debt is percent, and there are no taxes.
Use M&M Proposition I to find the price per share of equity.
Note: Do not round intermediate calculations and round your answer to decimal places, eg
What is the value of the firm under Plan I?
Note: Do not round intermediate calculations and round your answer to the nearest whole number, eg
What is the value of the firm under Plan II
Note: Do not round intermediate calculations and round your answer to the nearest whole number, eg
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