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Return question 6 Bellwood Corp. is comparing two different capital structures. Plan I would result in 27,000 shares of stock and $87,000 in debt. Plan
Return question 6 Bellwood Corp. is comparing two different capital structures. Plan I would result in 27,000 shares of stock and $87,000 in debt. Plan would result in 21,000 shares of stock and $261,000 in debt. The interest rate on the debt is 7 percent. Assume that EBIT will be $100,000. An all-equity plan would result in 30,000 shares of stock outstanding. Ignore taxes. 5 points What is the price per share of equity under Plan I? Plan II? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Answer is complete but not entirely correct. $ Plan Plan II 3.48 % 3.89 X $
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