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Vanier Corporation is comparing two different capital structures: an all-equity plan (Plan I) and a levered plan (Plan II). Under Plan I, th company would
Vanier Corporation is comparing two different capital structures: an all-equity plan (Plan I) and a levered plan (Plan II). Under Plan I, th company would have 195,000 shares of stock outstanding. Under Plan II, there would be 140,000 shares of stock outstanding and $1,787,500 in debt outstanding. The interest rate on the debt is 8%, and there are no taxes. Use M&M Proposition I to find the price per share. (Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.) Share price $ per share What is the value of the firm under each of the two proposed plans? (Do not round intermediate calculations. Omit $ sign in your response.) All equity plan Levered plan $
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