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Please make sure the answer is correct and explain how you got them, thanks! Fourdaton, incorpotated, is comporing two different capial structures, an oll-equity plan
Please make sure the answer is correct and explain how you got them, thanks!
Fourdaton, incorpotated, is comporing two different capial structures, an oll-equity plan (Plan l) and a levered plan (Pian i). Under Pan I, the company would have 205,000 shares of stock outstanding. Under Pian lil, there would be 125,000 shares of stock outstanding and 5173 mil on in debt outstanding. The interest rate on the debt is 8 percent, and there are no taxes: 8. We MaM Proposion 1 to find the price per share Note: Do not round intermediate cokulabions and round your answer to 2 decimal places, e.9., 32.16. b. What is the value of the firm under each of the two proposed plans? Note: Do not round intermediote caleulations and round your answers to the nearest whole number, e.9, 32 Step by Step Solution
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