Let the price per share of the equity be $ X
Capital structure 1 -
All equity financed, = 260,000 shares * $ X
Capital structure 2 -
Equity + Debt financed = 210,000 shares * $ X + $ 1,500,000
Since, there is a need to compare the two capital structures, thus -
Capital structure 1 = Capital structure 2
260,000 shares * $ X = 210,000 shares * $ X + $ 1,500,000
50,000 X = $ 1,500,000
X = $ 30
Thus, the price of equity = $ 30 per share
