Staal Enterprises is considering a change from its current capital structure. Staal currently has an all-equity capital structure and is considering a capital structure with 30 percent debt. There are currently 10,400 shares outstanding at a price per share of $30. EBIT is expected to remain constant at $33,904. The interest rate on new debt is 9 percent and there are no taxes.

Required:

(a)	Rebecca owns $24,000 worth of stock in the company. If the firm has a 100 percent payout, what is her cash flow?(Do not include the dollar sign ($).Round your answer to 2 decimal places (e.g., 32.16).)

Shareholder cash flow

$

(b)	What would her cash flow be under the new capital structure assuming that she keeps all of her shares?(Do not include the dollar sign ($). Round your answer to 2 decimal places (e.g., 32.16).)

Shareholder cash flow

$

(c)	Suppose the company does convert to the new capital structure. Show how Rebecca can maintain her current cash flow.

Number of shares stockholder should sell

Please help with Part B, I am stuck! Thank you.