Coco corporation is comparing two different capital structures, an all - equity
ID: 2420509 • Letter: C
Question
Coco corporation is comparing two different capital structures, an all - equity plan (plan 1) and a levered plan (plan2). Under plan 1, the company would have 185,000 shares of stock outstanding. Under plan 2 there would be 135,000 shares of stock outstanding and 2.29 million in debt outstanding. The interest rate on the debt is 5% and there are no taxes. A. Use MM proposition 1 to find the price per share ( do not round intermediate calculations and round answer to 2 decimal places) Share price = $ What is the value of the firm under each of the two proposed plans? (enter your answers in dollars, not millions of dollars. Do not round intermediate calculations, round your answers to the nearest whole numbers) All equity plan = $ Levered plan = $Explanation / Answer
sorry this seems to be an incomplete question. more information is needed.