Haskell Corp. is comparing two different capital structures. Plan I would result in 9,000 shares of stock and $70,000 in debt. Plan II would result in 3,000 shares of stock and $140,000 in debt. The interest rate on the debt is 5 percent. Assume that EBIT will be $60,000. An all-equity plan would result in 15,000 shares of stock outstanding. Ignore taxes.
What is the price per share of equity under Plan I? Plan II PS-