Dickson Corporation is comparing two different capital structures. Plan I would result in 34,000 shares...
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Dickson Corporation is comparing two different capital structures. Plan I would result in 34,000 shares of stock and $97,500 in debt. Plan II would result in 28,000 shares of stock and $292,500 in debt. The interest rate on the debt is 6 percent. Assume that EBIT will be $135,000. An allequity plan would result in 37,000 shares of stock outstanding. Ignore taxes. What is the price per share of equity under Plan 1? Plan Il? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g. 32.16
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