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Haskell Corp is comparing two different capital structures Plan I would result in 14000 shares of stock and $95000 in debt Plan II would result in 8000 shares of stock and

Haskell Corp. is comparing two different capital structures. Plan I would result in 14,000 shares of stock and $95,000 in debt. Plan II would result in 8,000 shares of stock and $190,000 in debt. The interest rate on the debt is 9 percent. Assume that EBIT will be $80,000. An all-equity plan would result in 20,000 shares of stock outstanding. Ignore taxes.

   

What is the price per share of equity under Plan I? Plan II? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

 

Apr 04 2020 View more View Less

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