Gabella's is an all-equity firm that has 36.000 shares of stock outstanding at a market price of $27 a share. The firm has earnings before interest and taxes of $57,600 and has a 100 percent dividend payout ratio. Ignore taxes Gabella's has decided to issue $125,000 of debt at a rate of 9 percent and use the proceeds to repurchase shares. Terry owns 800 shares of Gabella's stock and has decided to continue holding those shares. How will Gabella's debt issue affect Terry's annual dividend income? O Decrease from $640 to $567 Increase from $2,160 to $1,890 Decrease from $640 to $591 Increase from $1.890 to $2.160 No change Gabella's is an all-equity firm that has 36.000 shares of stock outstanding at a market price of $27 a share. The firm has earnings before interest and taxes of $57,600 and has a 100 percent dividend payout ratio. Ignore taxes Gabella's has decided to issue $125,000 of debt at a rate of 9 percent and use the proceeds to repurchase shares. Terry owns 800 shares of Gabella's stock and has decided to continue holding those shares. How will Gabella's debt issue affect Terry's annual dividend income? O Decrease from $640 to $567 Increase from $2,160 to $1,890 Decrease from $640 to $591 Increase from $1.890 to $2.160 No change