Kyle Corporation is comparing two different capital structures, an all equity plan (plan1) and a levered plan

M&M and Stock values - Kyle Corporation is comparing two different capital structures, an all equity plan (plan1) and a levered plan (2) under plan, Kyle would have 800,000 shares of stock outstanding. Under plan 2 there would be 320,000 shares of stock understanding. and $10 million in debt outstanding. Use M&M proposition 1 to find the price per share of equity under each of the two proposed plans. What is the value of the firm?

File name: Kyle-Corporation.doc File type: application/msword Price: $5