homemade leverage: Star, Inc. is considering converting its all-equity capital structure to one that is 35 percent debt. Currently, there are 6,000 shares outstanding and the price per share is $58. EBIT is expected to remain constant at $33,000 per year. The interest rate on new debt is 8 percent. There are no taxes. Suppose the all-equity version of Star, Inc. could pay dividends of $5.50 per share and the levered version of Star, Inc. would pay dividends of $5.96 per share. What fraction of your wealth in Star, Inc. should you divest from their equity and invest in their debt in order to achieve the same cash flow from your total investment in the newly-levered Star, Inc. (i.e. as the cash flow that was expected from your total investment in the all-equity version of Star, Inc.)? 35 percent 25 percent 45 percent None of these values are correct.