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Find shares of common stock are outstanding for plan i

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Reference no: EM132680468

DEF Ltd is considering two different financing plans.

1. Under plan I the interest would be 8% on $100,000 face value bonds.

2. Under plan II the interest would be $10,125 with 1,400 shares of common stock outstanding.

If the indifference point is $25,000 and the tax rate is 30%, how many shares of common stock are outstanding for plan I?

Reference no: EM132680468

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