Finch, Incorporated, is debating whether or not to convert its all$-$equity capital structure to one that is $30$ percent debt. Currently, there

are $5,000$ shares outstanding and the price per share is $$60.$ EBIT is expected to remain at $$25,000$ per year forever. The interest rate

on new debt is $6$ percent, and there are no taxes.

a$.$ Allison, a shareholder of the firm, owns $100$ shares of stock. What is her cash flow under the current capital structure, assuming the

firm has a dividend payout rate of $100$ percent?

Note: Do not round intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$

b$.$ What will Allison's cash flow be under the proposed capital structure of the firm? Assume she keeps all $100$ of her shares.

Note: Do not round intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$

c$.$ Assume that Allison unlevers her shares and re$-$creates the original capital structure. What is her cash flow now?

Note: Do not round intermediate calculations and round your answer to $2$ decimal places, e$.$g$.,32\mathrm{.}16.$