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FCOJ, Inc., a prominent consumer products firm, is debating whether or not to convertits all-equity capital structure to one that is 40 percent detit. Currently,

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FCOJ, Inc., a prominent consumer products firm, is debating whether or not to convertits all-equity capital structure to one that is 40 percent detit. Currently, there are 5.0 shares outstanding and the price per share is 566 EBIT is expected to remain at $21.990 per year forever. The interest rate on now debt is it percent, and there are notre a. Melanie, a shareholder of the firm owns 250 shares of stock. What is her cash flow under the current capital structure, assuming the firm has a dividend payout rate of 100 percent (Do not round intermediate calculations and round your answer to 2 decimal places... 32.16) Shareholder cash flow b. What wie Melanie's cash flow be under the proposed capital structure of the fim? Assume that she keeps al 250 of her shares (De not round intermediate calculations and round your answer to 2 decimal places, 9.32.16) Shareholder cash flow c. Suppose FCO dons convert, but Melanie prefers the current all-equity capital structure Show how she could never her shares of stock to recreate the original capital structure (De not round intermediate calculations and round your answer to the nearest whole number 032) Number of shares stockholder should sell FCOJ, Inc., a prominent consumer products firm, is debating whether or not to convertits all-equity capital structure to one that is 40 percent detit. Currently, there are 5.0 shares outstanding and the price per share is 566 EBIT is expected to remain at $21.990 per year forever. The interest rate on now debt is it percent, and there are notre a. Melanie, a shareholder of the firm owns 250 shares of stock. What is her cash flow under the current capital structure, assuming the firm has a dividend payout rate of 100 percent (Do not round intermediate calculations and round your answer to 2 decimal places... 32.16) Shareholder cash flow b. What wie Melanie's cash flow be under the proposed capital structure of the fim? Assume that she keeps al 250 of her shares (De not round intermediate calculations and round your answer to 2 decimal places, 9.32.16) Shareholder cash flow c. Suppose FCO dons convert, but Melanie prefers the current all-equity capital structure Show how she could never her shares of stock to recreate the original capital structure (De not round intermediate calculations and round your answer to the nearest whole number 032) Number of shares stockholder should sell

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