QUESTION 2 FCOJ, Inc., a prominent consumer products firm, is debating whether to convert its all-equity capital structure to one that is 20 percent debt. Currently, there are 17,000 shares outstanding, and the price per share is $47. EBIT is expected to remain at $39,100 per year forever. The interest rate on new debt is 6.5 percent, and there are no taxes. a. Allison, a shareholder of the firm, owns 150 shares of stock. What is her cash flow under the current capital structure, assuming the firm has a dividend payout rate of 100 percent? 1.345 2.316.69 3. None of these 4.345.00