Dynamo Corp. produces annual cash flowsof $150 and is expected to exist forever. The company is currently financedwith 75 percent equity and 25 percent debt. Your analysis tells you that theappropriate discount rates are 10 percent for the cash flows, and 7 percentfor the debt. You currently own 10 percent of the stock.

According to M&M Proposition 1, what transaction do you need to take in order to undo the restructuring?

Please show full workings, thank you.