OOke Co. is comparing two different capital structures. Plan I would result in 8,500 shares of stock and $402,500 in debt. Plan II would result in 12,000 shares of stock and $280,000 in debt. The interest rate on the debt is 11 percent. The all-equity plan would result in 20,000 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 $