Question: Please solve quickly 10 point Irving Corp. is currently all equity is considering a $555000 debt issue maintain a debt equity ratio of 0.40 in

 Please solve quickly 10 point Irving Corp. is currently all equity

Please solve quickly

10 point Irving Corp. is currently all equity is considering a $555000 debt issue maintain a debt equity ratio of 0.40 in the capital structure following M&M Proposition L. The intere debt is 10%. There are currently 75000 shares outstanding. The Earnings before interest and taxes is expected to remain constant at 9000005. The debt proceeds we used to se the shares a. Compute the current EPS and EPS after change in the capital structure if the firm has a constant pay out rate of 75% Show the steps of calculating share price and trambe share repurchases under proposed capital structure. (3 points) h. If you own 4440 worth of stock in this company what is your total cash flow if the pay out rate under the current capital structure? (3.5 points) c. Compute the number of shares repurchased from you and the total cash flow you will receive under the new capital structure? (3.5 points)

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