Kolby corp. is comparing two different capital structures. plan i would result in 10,000 shares of stock and $100,000 in debt. plan ii would result in 5,000 shares of stock and $200,000 in debt. the interest rate on the debt is 6 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?