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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 $150 and is expected to exist forever. The company is currently financed with 75 percent equity and 25 percent debt. Your analysis tells you that the appropriate discount rates are 10 percent for the cash flows, and 7 percent for the debt. You currently own 10 percent of the stock. If Dynamo wishes to change its capital structure from 75 percent to 60 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 1?
$15 and $60
$60 and $15
$10.80 and $22.50
$22.50 and $10.80
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