Homemade Leverage Bint, Inc., is debating whether to convert its all-equity capital structure to one that is 30 percent debt. Currently, there are 8,500 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. Martin, a shareholder of the firm, owns 100 shares of stock. What is his cash flow under the current capital structure, assuming the firm has a dividend payout rate of 100 percent? [4 points] b. What will Martin's cash flow be under the proposed capital structure of the firm? Assume he keeps all 100 of her shares. [4 points] c. Suppose the company does convert, but Martin prefers the current all-equity capital structure. Show how he could unlever his shares of stock to re-create the original capital structure. [4 points] d. Using your answer to part (c), explain why the company's choice of capital structure is irrelevant. [3 points]