Answer:
Check the following calculations
Explanation:
All-Equity Plan:
Number of shares = 15,000
Plan I:
Number of shares = 12,700
Value of debt = $109,250
Price per share = Value of debt / (Number of shares under All-Equity Plan - Number of shares under Plan I)
Price per share = $109,250 / (15,000 - 12,700)
Price per share = $109,250 / 2,300
Price per share = $47.50
Plan II:
Number of shares = 9,800
Value of debt = $247,000
Price per share = Value of debt / (Number of shares under All-Equity Plan - Number of shares under Plan II)
Price per share = $247,000 / (15,000 - 9,800)
Price per share = $247,000 / 5,200
Price per share = $47.50
