1. Caykur a prominent tea production firm in Rize(Turkey) is debating whether to convert its all-equity capital structure to one that is 30 percent debt. Currently, there are 5,000 shares outstanding, and the price per share is $10. EBIT is expected to remain at $12,000 per year forever. The interest rate on new debt is 15 percent, and there are no taxes. a. Ali, a shareholder of the firm, owns 100 shares of stock. What is his cash flow under the current capital structure, assuming the firm has a dividend payout rate of 100 percent? [5 Points] b. What will Ali's cash flow be under the proposed capital structure of the firm? Assume he keeps all 100 of his shares. [5 Points] c. Suppose the company does convert, but Ali prefers the current all-equity capital structure. Show how he could unlever his shares of stock to re-create the original capital structure. [5 Points]