b) BTA pic, a technology products firm, is debating whether to convert its all-equity capital structure to one that has 30% debt. Currently there are 4,000 shares outstanding and the share price is 52. EBIT is expected to remain at 24,000 per year forever. The interest rate on new debt is 9% and there are no taxes. 1. Under the current capital structure, show the cash flow for a shareholder of the firm who owns 1000 shares of equity, assuming the firm has a dividend pay-out rate of 20% ii. What will the shareholder's cash flow be under the new capital structure of the firm? Assume the investor will keep her 1000 shares and that the dividend pay-out is still 20%