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Finch, Incorporated, is debating whether or not to convert its all-equity capital structure to one that is 29 percent debt. Currently, there are 28,811 shares

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Finch, Incorporated, is debating whether or not to convert its all-equity capital structure to one that is 29 percent debt. Currently, there are 28,811 shares outstanding and the price per share is $72.47. EBIT is expected to remain at $110,391 per year forever. The interest rate on new debt is 8.91 percent, and there are no taxes. Allison, a shareholder of the firm, owns 760 shares of stock. Allison's 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 70%. Answer to two decimals. e.g. 123.34. Do not round at arfy step. Assume that firms can issue partial shares

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