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Petaluma pottery is considering a change to its capital structure. the company currently has an all-equity capital structure and is considering changing to a capital structure with 40% debt. There are currently 2000 shares outstanding at a price of $100 per share. EBIT is expected to remain constant at $29,000. The interst rate on new debt is 7% and there are no taxes. SSU student owns $20,000 worth of stock in Petaluma Pottery. Question 1: What is sues cash flow under both the current and proposed capital structure assuming Petaluma pays out 100% of its income in dividends. A) $1540, $2560 B) $1900, $2900 C) $2320, $3120 D) $2540, $3560 E) $2900, $3900