Seether, Inc., a prominent consumer products firm, is debating whether to convert its all-equity capital structure to one that is 39 percent debt. Currently, there are 2,400 shares outstanding, and the price per share is $75. EBIT is expected to remain at $15,000 per year forever. The interest rate on new debt is 9 percent, and there are no taxes.

Required : (a) Allison, a shareholder of the firm, owns 100 shares of stock. Her cash flow is how much under the current capital structure, assuming the firm has a dividend payout rate of 100 percent? (Do not include the dollar sign ($). Round your answers to 2 decimal places. (e.g.,16.32))

(b) Allison's cash flow will be how much under the proposed capital structure of the firm. Assume she keeps all 100 of her shares.(Do not include the dollar sign ($). Round your answers to 2 decimal places. (e.g.,16.32))

(c) Suppose the company does convert, but Allison prefers the current all-equity capital structure. She could unlever her shares of stock to recreate the original capital structure by selling how many shares of stock and lending the proceeds at 9 percent?