Blaine Kitchenware, Inc. is an all-equity cash-rich company 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 Blaine Kitchenware, Inc. 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 $96,572 Less: 

Selling, General & Administrative 

Expenses $28,512 EBIT $68,060 

Earnings Before Tax $68,060 Less: 

Taxes $23,821 

Net Income $44,239 

Dividends $28,345 1

Questions: . 

Calculate the dividends per share for the current and proposed capital structure and discuss how capital structure affects the cash flows to shareholders. please explain how to calculate dividends?