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Please provide some detail explain, thanks a lot!!! 9 Bellwood Corp. is comparing two different capital structures. Plan I would result in 38,000 shares of
Please provide some detail explain, thanks a lot!!!
9 Bellwood Corp. is comparing two different capital structures. Plan I would result in 38,000 shares of stock and $106,500 in debt. Plan Il 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. 10 points What is the price per share of equity under Plan I? Plan I? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g.. 3216.) eBook Plan l Print Plan II ReferencesStep by Step Solution
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