ABC Corporation, a prominent Malaysia trading firm, is wondering whether to have new capital structure to convert its all-equity capital structure to one that is 35% debt. At the moment, there are 6000 shares outstanding and the price per share is $58. EBIT is expected to remain at $33,000 per year forever. The interest rate on new debt is 8 per cent and assuming zero taxes. Ms Luck a shareholder of ABC Corporation, owns 100 shares of stock. Calculate her cash flow under the current capital structure when the firm pays out all earning as dividend? [10 marks] When the capital structure is changed to 35% debt and 65% equity, what will Ms Luck's cash flow look like? Assume that she keeps all 100 of her shares. [15 marks]