finace help

= Chapter 13 Question 8 (of 17) > FCOJ, Inc., a prominent consumer products firm, is debating whether or not to convertits al equity capital structure to one that is 30 percent obt. Currenty, there are 5.700 shares outstanding and the price per share is $55. EBIT is expected to remain at $18.600 per year forever. The interest rate on now debt is 8 percent, and there are no taxes Required: (a) Melanie, a shareholder of the firm owns 100 shares of stock What is her cash fow under the current capital structure, assuming the firm has a dividend payout rate of 100 percent? (Do not found Intermediate calculations. Round your answer to 2 decimal places (eg. 32.16)) Shareholder cash flow (b) What wil Melanie's cash flow be under the proposed capital structure of the firm? Assume that she keeps all 100 of the shares (Do not round Intermediate calculations. Round your answer to 2 decimal places (eg.12.16)) Shareholders fow (c) Suppose FCO does convert, but Mere prefers the Ourent equity capital structure Show how she could never he shares of stock to create the ongnal capital structure Number of shares stockholder should sol shares 14 dtv A MacBook Air GO DH DD FY 10 1 2 23 3 $ 4 % 5