Question: Please answer it quickly i need it in an hour. Urgent ! Thumbs up for you. 9. Homemade Leverage Lemansky Enterprises is considering a change

Please answer it quickly i need it in an hour. Urgent ! Thumbs up for you.

Please answer it quickly i need it in an hour. Urgent !

9. Homemade Leverage Lemansky Enterprises is considering a change from its current capital structure. The company currently has an all-equity capital structure and is considering a capital structure with 25 percent debt. There are currently 8,400 shares outstanding at a price per share of $50. EBIT is expected to remain constant at $47,000. The interest rate on new debt is 7 percent, and there are no taxes, a. Rebecca owns $20,000 worth of stock in the company. If the firm has a 100 percent payout, what is her cash flow? b. What would her cash flow be under the new capital structure assuming that she keeps all of her shares

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