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Dynamo Corp. produces annual cash flows of $ 1 5 0 and is expected to exist forever. The company is currently financed with 7 5
Dynamo Corp. produces annual cash flows of $ and is expected to exist forever. The company is currently financed with percent equity and percent debt. Your analysis tells you that the appropriate discount rates are percent for the cash flows, and percent for the debt. You currently own percent of the stock. If Dynamo wishes to change its capital structure from percent to percent equity, how much of the special dividend do you receive, and how much do you receive in regular dividends per year after the restructuring according to M&M Proposition
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