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 $