Cooke co is comparing two different capital structures plan, Ask an Expert

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Cooke Co. is comparing two different capital structures. Plan I would result in 9,000 shares of stock and $430,000 in debt. Plan II would result in 12,600 shares of stock and $275,200 in debt. The interest rate on the debt is 9 percent. The all-equity plan would result in 19,000 shares of stock outstanding. Ignore taxes for this problem.

Required:

(a) What is the price per share of equity under Plan I?

Price per share $

(b) What is the price per share of equity under Plan II?

Price per share $

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91773499

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