Question: Please make sure the answer is correct and explain how you got them, thanks! Finch, incorporated, is debating whether or not to convert its allequity
Finch, incorporated, is debating whether or not to convert its allequity capital structure to one that is 30 percent debt. Currently, there ore 13,000 shares outstanding ond the price per share is 543 . EBI is expected to remain at $72.800 per year forever. The interest rote on new debt is 65 percent, and there are no tares. a. Alson, o shereholder of the tirm, owns 200 shares of stock. What is her cash flow under the current capital structure, assuming the firm has a dividend payout rate of 100 percent? Note: Do not round intermediate calculotions and round your answer to 2 decimal places, e.g., 32.16. b. What will Alson's cosh Ilow be under the proposed capital structure of the firm? Assume she keeps all 200 of her shares. Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.9. 32.16. c. Assume that Alison unlevers her shares and re-creates the original capital structure. What is her cash fow now? Note: Do not round intermediate calculetions and round your answer to 2 decimal places, e.9. 32.16
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