Question: Please make sure the answers are correct and explain how you got them, thanks! Finch, Incorporated, is debating whether or not to convent its all-equity

Please make sure the answers are correct and explain how you got them, thanks!
 Please make sure the answers are correct and explain how you

Finch, Incorporated, is debating whether or not to convent its all-equity capital structure to one that is 25 percent debt. Currently, there are 12,000 shares outstanding ond the price per share is $56. EBIT is expected to remain at $36,000 per year forever. The interest rote on new debt is 9 percent, and there are no taxes. 0. Alison, a shareholder of the firm, owns 100 shares of stock. What is her cash flow under the current capital structure, assuming the firm has dividend payout rate of 100 percent? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.9. 32.16. b. Whot will Allison's cash flow be under the proposed copital structure of the firm? Assume she keeps all 100 of her shares Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.9., 32.16. c. Assume that Allison unlevers her shares and re-creates the original capital structure. What is her cash flow now? Note: Do not round intermediate calculotions and round your answer to 2 decimal places, e.9., 32.16. Finch, Incorporated, is debating whether or not to convent its all-equity capital structure to one that is 25 percent debt. Currently, there are 12,000 shares outstanding ond the price per share is $56. EBIT is expected to remain at $36,000 per year forever. The interest rote on new debt is 9 percent, and there are no taxes. 0. Alison, a shareholder of the firm, owns 100 shares of stock. What is her cash flow under the current capital structure, assuming the firm has dividend payout rate of 100 percent? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.9. 32.16. b. Whot will Allison's cash flow be under the proposed copital structure of the firm? Assume she keeps all 100 of her shares Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.9., 32.16. c. Assume that Allison unlevers her shares and re-creates the original capital structure. What is her cash flow now? Note: Do not round intermediate calculotions and round your answer to 2 decimal places, e.9., 32.16

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