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Fletcher Corporation is debating whether to convert its all-equity capital structure to one that is 45% debt. Currently, there are 2,221 shares outstanding selling at

Fletcher Corporation is debating whether to convert its all-equity capital structure to one that is 45% debt. Currently, there are 2,221 shares outstanding selling at $68 per share. EBIT is expected to remain at $13,971 per year forever. The interest rate on new debt is 4%, and there are no taxes.

Suppose that Fletcher goes through with the recapitalization, but you prefer the previous all-equity structure. You can unlever you position and re-create the original capital structure by selling a portion of your 100 shares and using that money to purchase the firms debt issue. How many of your 100 shares must you sell? (Round answer to 0 decimal places. Do not round intermediate calculations)

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