Trapper Corporation is comparing two different capital structures, an all-equity plan (Plan I) and a levered plan (Plan II). Under Plan I, the company would have 165,000 shares of stock outstanding. Under Plan II, there would be 115,000 shares of stock outstanding and $1.43 million in debt outstanding. The interest rate on the debt is 8 percent and there are no taxes.

a.Use M&M Proposition I to find the price per share.(Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

b.What is the value of the firm under each of the two proposed plans