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Hi, can someone help me with this question? Thanks a lot A company is comparing two different capital structures. Plan I would result in 13,000

Hi, can someone help me with this question? Thanks a lot

A company is comparing two different capital structures.

Plan I would result in 13,000 shares of stock and $130,500 in debt.

Plan II would result in 10,400 shares of stock and $243,600 in debt. The interest rate on the debt is 10%.

Assume that EBIT will be $56,000. An all-equity plan would result in 16,000 shares of stock outstanding. Ignore taxes.

Calculate the price per share of equity under Plan I and Plan II:

These answers for the question are wrong: 3.30 , 3.04

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