Wk11 Q4 MM and Stock Value James Corporation is comparing two different capital structures, an all-equity plan (Plan I) and a levered plan (Plan II)….

Wk11 Q4 M&M and Stock Value James Corporation is comparing two different capital structures, an all-equity plan (Plan I) and a levered plan (Plan II). Under Plan I, the company would have 160,000 shares of stock outstanding. Under Plan II, there would be 80,000 shares of stock outstanding and $2.8 million in debt outstanding. The interest rate on the debt is 8 percent and there are no taxes.Using M&M Proposition I, the price per share of equity under each of the two proposed plans is $___. The value of the firm is $ ___under Plan I, and $___ under Plan II. (Do not include the dollar signs ($). Round your answers to 2 decimal places. (e.g., 32.16))

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