Please help with the following question and show the steps: Zombie Inc., a prominent consumer products firm, is debating whether or not to convert its all-equity capital structure to one that is 40% debt. Currently, there are 1,000 shares outstanding and the price per share is $70. EBIT is expected to remain at $7,000 per year forever. The interest rate on new debt is 7%, and there are no taxes.

a- Ms. Spears, a shareholder of the firm, owns 100 shares of stock. What is her cash flow under the current capital structure, assuming that the firm has a dividend payout rate of 100%?

b- What will Ms. Spears cash flow be under the proposed capital structure of the firm? Assume that she keeps all 100 of her shares?

c- Suppose the firm converts to the proposed capital structure, but Ms. Spears prefers the current all-equity capital structure. Show how she could unlever her shares of stock to recreate the original capital structure.