LAN Corp is sceptical about whether it should convert its all$-$equily capital structure into $34\%$ debt firm. At present, there re $7,350$ shares outstanding and the price per share is $$61$ Eir has cash flows in perpetuity at $$20,100$ per year. The firm is tax free and the interest rate on debt is $7\mathrm{.}3\%.$

Christle is a shareholder in the firm and owns $100$ shares of stock. Determine her cash flow under the current capital structure, assuming the firm pays out dividend at the rate of $100.$

Assume christie keeps all her $100$ shares, what will be her cash flow under the proposed capital structure of the firm.

Suppose the firm converts, but Christie prefers the current capital structure How should she unlever her share of stock to recreate the original capital structure

$$27347,0$$$18495$ c $31$ share to sell

a$.$ $$21337$ o $$12415,$ c $33$ share to sell

a $$20347$ b $$16495.$ c $32$ share to sell

$$27347$ b$.$ $$18495$ c $34$ thare to sed