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Gulf Shores Inn Is Comparing Two Separate Capital Structures

Question 43

Multiple Choice

Gulf Shores Inn is comparing two separate capital structures.The first structure consists of 260,000 shares of stock and no debt.The second structure consists of 200,000 shares of stock and $1.5 million of debt.What is the price per share of equity?


A) $18
B) $21
C) $25
D) $30
E) $33

Correct Answer:

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