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Business, 11.05.2021 17:10 amulets2274

Lennon & McCartney Co is comparing two different capital structures: An all equity plan (Plan 1) and a levered plan (Plan 2). Under Plan 1, the company would have 200,000 shares of stock outstanding. Under Plan 2, there would be 130,000 shares of stock outstanding and $1.525 million in debt outstanding. The interest rate on the debt is 8%, and there are no taxes. What is the price per share?

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Lennon & McCartney Co is comparing two different capital structures: An all equity plan (Plan 1)...
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