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Finch, Incorporated, is debating whether or not to convert its all - equity capital structure to one that is 2 6 percent debt. Currently, there
Finch, Incorporated, is debating whether or not to convert its allequity capital structure to one that is percent debt. Currently, there are shares outstanding and the price per share is $ EBIT is expected to remain at $ per year forever. The interest rate on new debt is percent, and there are no taxes. Allison, a shareholder of the firm, owns shares of stock. Allisons cash flow be under the proposed capital structure of the firm will be $ Assume she keeps all of her shares and a payout ratio of Answer to two decimals. eg Do not round at any step. Assume that firms can issue partial shares.
Finch, Incorporated, is debating whether or not to convert its allequity capital structure to one that is percent debt. Currently, there are shares outstanding and the price per share is $ EBIT is expected to remain at $ per year forever. The interest rate on new debt is percent, and there are no taxes. Allison, a shareholder of the firm, owns shares of stock. Allisons cash flow be under the proposed capital structure of the firm will be $ Assume she keeps all of her shares and a payout ratio of Answer to two decimals. eg Do not round at any step. Assume that firms can issue partial shares.
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