Western Shores Is Comparing Two Separate Capital Structures

question 60

Multiple Choice

Western Shores 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

---

Definitions:

Institutional Setting

The context or environment defined by established organizations or structures in which activities and interactions take place.

Ethnomethodological

Pertains to a sociological perspective focusing on how people make sense of their everyday lives and the methods they use to interact with one another.

Ethnomethodological

Pertaining to ethnomethodology, a sociological perspective focusing on the ways in which people make sense of their everyday life and the methods they use to do so.

Conversational Analysis

The study of the structure and patterns of social interactions, particularly through spoken conversation.