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3 20 points eBook Finch, Incorported, is debating whether or not to convert its all-equity...

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3 20 points eBook Finch, Incorported, is debating whether or not to convert its all-equity capital structure to one that is 30 percent debt. Currently there are 6,500 shares outstanding and the price per share is $51. EBIT is expected to remain at $41,000 per year forever. The interest rate on new debt is 8 percent and there are no taxes. a. Allison, a shareholder of the firm, owns 100 shares of stock. What is her cash flow under the current capital structure, assuming the firm has a dividend payout rate of 100 percent? (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What will Allison's cash flow be under the proposed capital structure of the firm? Assume that she keeps all 100 of her shares. (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. Assume that Allison unlevers her shares and recreates the original capital structure. What is her cash flow now? (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Hin Print References a. Cash flow b. Cash flow c. Cash flow

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