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Business, 21.08.2019 01:30 kristofwr3444

Bellwood corp. is comparing two different capital structures. plan i would result in 24,000 shares of stock and $82,500 in debt. plan ii would result in 18,000 shares of stock and $247,500 in debt. the interest rate on the debt is 4 percent. assume that ebit will be $85,000. an all-equity plan would result in 27,000 shares of stock outstanding. ignore taxes. what is the price per share of equity under plan i? plan ii?

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