Byrd Corporation is comparing two different capital structures, an all-equity plan (Plan I) and a levered...

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Byrd Corporation is comparing two different capital structures,an all-equity plan (Plan I) and a levered plan (Plan II). UnderPlan I, the company would have 195,000 shares of stock outstanding.Under Plan II, there would be 145,000 shares of stock outstandingand $2.13 million in debt outstanding. The interest rate on thedebt is 8 percent and there are no taxes.

a.
Use MM Proposition I to find the price per share. (Donot round intermediate calculations and round your answer to 2decimal places, e.g., 32.16.)
b. What is the value of the firm under each of the two proposedplans? ((Do not round intermediate calculations and enteryour answers in dollars, not millions of dollars, rounded to thenearest whole number, e.g., 1,234,567.)

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Byrd Corporation is comparing two different capital structures,an all-equity plan (Plan I) and a levered plan (Plan II). UnderPlan I, the company would have 195,000 shares of stock outstanding.Under Plan II, there would be 145,000 shares of stock outstandingand $2.13 million in debt outstanding. The interest rate on thedebt is 8 percent and there are no taxes. a.Use MM Proposition I to find the price per share. (Donot round intermediate calculations and round your answer to 2decimal places, e.g., 32.16.)b.What is the value of the firm under each of the two proposedplans? ((Do not round intermediate calculations and enteryour answers in dollars, not millions of dollars, rounded to thenearest whole number, e.g., 1,234,567.)

a.	Use MM Proposition I to find the price per share. (Donot round intermediate calculations and round your answer to 2decimal places, e.g., 32.16.)
b.	What is the value of the firm under each of the two proposedplans? ((Do not round intermediate calculations and enteryour answers in dollars, not millions of dollars, rounded to thenearest whole number, e.g., 1,234,567.)