10 points Question 2 In Carpactly all puty codering a 5555000 debt esse maintain a debt equity ratio of 0.40 in the capital structure following M&M Proposition. The interest rate on debe a 10 The currently 75000hares outstanding The Earnings before interest and takes is expected to remain constant at 900000$. The debe proceeds are used to repurchase the shares Compte te rret EPS and EPS after change in the capital structure af the firm has a constant pay out rate of 75%. Show the steps of calculating share price and number of If you own 440 worth of neck the company what is your total cash flow of the pay out rate under the current capital structure? (3.5 points) Caput the number of shares repurchased from you and the total cash flow you will recene under the new capital structure? (3.5 points) Ferenc Tor AL Anal 1px AIXO @ Q 6 . 10 points Save leving Corp is currently all equity is considering a 5555000 debt we maintain a debt equity ratio of 040 in the capital structure following M&M Proposition. The interest rate on debt is 10%. There are currently 75000 shares outstanding. The Earnings before interest and taxes is expected to remain constant at 9000005 The debt proceeds are used to repurchase the shares Compute the current EPS and EPS after change in the capital structure of the form has a constant pay out rate of 75%. Show the steps of calculating share price and number of share repurchases de proposed capital tracture points) b. If you own 4440 worth of stock in this company what is your total cash flow if the pay out rate under the current capital structure? (3.5 points) Compute the number of shares repurchased from you and the total cash flow you will secene under the new capital structure? 5 points) For the toolbar.press ALT-F10 POR ALTINF0 (MC) BIUS Paragraph 14 2 XO @ Q 6 > T