Sport L&K Company produces annual cash flows of $704 dollars and is expected to exist forever. The company is currently financed with 67 percent equity. Your analysis tells you that the appropriate discount rates are 13.79 percent for the cash flows, and 5.19 percent for the debt. You currently own 5 percent of the shares.

Sport L&K wishes to change its capital structure from 67 percent to 53 percent equity and use the debt proceeds to pay a special dividend to shareholders. How much of the special dividend do you receive?

Assume that all conditions identified by the M&M Proposition 1 apply.

Round the answer to two decimals. Please enter the answer in thousands.

Your Answer: