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2. FMCG Inc an all equity firm with 9200 shares outstanding with 80 percent payout is considering a capital structure with 35% debt. The current

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2. FMCG Inc an all equity firm with 9200 shares outstanding with 80 percent payout is considering a capital structure with 35% debt. The current trading price of the stock is $45 and a constant Earnings before interest and taxes equal to $85,000. If the interest rate on new debt is 6 percent and there are no taxes. If you own $9000 worth of stock in the company, what would be your cash flow with the change in the capital structure? 1 No of shares owned by you initially (before the change in capital structure) (1 points) 2. Net Income and EPS after change in capital structure ( 3 points) 3. What will be your total cash flow after change in capital structure ( 2 points)

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