Bruno's is considering changing from its current all$-$equity capital structure to $30$ percent debt. There are currently $7,500$ shares outstanding at a price per share of $$39.$ EBIT is expected to remain constant at $$23,000.$ The interest rate on new debt is $7\mathrm{.}5$ percent and there are no taxes. Tracie owns $$12,675$ worth of stock in the company. The firm has a $100$ percent payout. What would Tracie's cash flow be under the new capital structure assuming that she keeps all her shares?Bruno's is considering changing from its current all$-$equity capital structure to $30$ percent debt. There are currently $7,500$ shares

outstanding at a price per share of $$39.$ EBIT is expected to remain constant at $$23,000.$ The interest rate on new debt is $7\mathrm{.}5$ percent and

there are no taxes. Tracie owns $$12,675$ worth of stock in the company. The firm has a $100$ percent payout. What would Tracie's cash

flow be under the new capital structure assuming that she keeps all her shares?

Hint: All$-$equity value $=7,500$$$39=$$$292,500$

Shares repurchased $=7,500\mathrm{.}30=2,250$ shares

EPS $=[$$$23,000-($$$292,500)(\mathrm{.}30)(\mathrm{.}075)](7,500-2,250)=$$$3\mathrm{.}1274$

Cash flow $=($$$3\mathrm{.}1274)($$$12,675$$$39)=?$