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Lemansky Enterprises is considering a change from its current capital structure. The company currently has an all-equity capital strueture and is considering a capital structure

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Lemansky Enterprises is considering a change from its current capital structure. The company currently has an all-equity capital strueture and is considering a capital structure with 35 percent debt. There are currently 6,000 shares outstanding at a price per share of $90. EBIT is expected to remain constant at $75,000. The interest rate on new debt is 12 percent and there are no taxes 3. Rebecca owns $36,000 worth of stock in the company. If the firm has a 100 percent payout, what is her cash flow? Note: Do not round intermediate calculations and round your answer to 2 decimal places, 32.16. b. What would her cash fow be under the new capital structure assuming that she keeps all of her shares? Note: Do not round intermediate calculations and round your answer to 2 decimal places, 32.16 . c. Suppose the company does convert to the new capital structure. Show how Rebecca can maintain her current cash flow. Note: Do not round intermedlate calculations and round your answer to the nearest whole number, 32

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