An all-equity cash-rich company is considering the following change in capital structure: _ borrow $50 millions at an interest rate of 6.75% _ use the loan together with $209 millions of its own cash to repurchase 14 millions shares at the current market price of $18.50/share Currently, the (market value) balance sheet and the income statement of the firm. are as follows (expressed in $ thousands) : Assets Liabilities Cash $230,866 Debt $0 Other Assets $257,497 Equity $488,363 Total $488,363 Equity $488,363 Revenue $346,366 Less: Cost of Goods Sold $249,794 Gross Profit Less: Selling, General & Administrative Expenses $96,572 $28,512 EBIT $68,060 Earnings Before Tax Less: Taxes $68,060 $23,821 Net Income Dividends $44,239 $28,345 Questions: 1. Calculate the dividends per share for the current and proposed capital structure and discuss how capital structure affects the cash flows to shareholders.

I need to know how to calculate the dividends ? not only the solution please. Thank you