Determining the price per share of equity


A Company is comparing two separate capital structures. The first structure consists of 260,000 shares of stock and no debt. The second structure consists of 210,000 shares of stock and $1.5 million of debt. What is the price per share of equity?

a. $18

b. $22

c. $27

d. $30

e. $33

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Finance Basics: Determining the price per share of equity
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