The answers are a and i.

Thank you!

The following information applies to the next TWO questions: Montauk Meetings is a firm whose primary product is a subscription dating app service that specializes in matching clients who are too awkward to even say hello (let alone hold a conversation) with clients that make extreme hair choices and who could best be described as human trainwrecks. The firm's pre-tax operating income (i.e. EBIT) is projected to be $33.25 million each year forever if economic conditions are normal. The firm has historically had a one-hundred percent div- idend payout ratio and intends to maintain this policy going forward. Assume that Montauk Meetings exists in a world of perfect capital markets. Montauk Meetings recently issued new shares in order to pay down its $74.10 million dollars of debt, on which it was paying interest at a rate of 7.00% per annum. After the share issue, it currently trades as an all-equity firm with a total market value of $190.00 million with 7.6 million shares outstanding. Question 3 Joel is an investor that currently owns 3,000 shares of Montauk Meetings, which is the same number that he owned prior to the share issue. Which of the following is closest to the change in total annual dividends that Joel can expect to receive each year as a result of the firm's recent change in capital structure? a. -$5,034.84 b. -$3,356.56 c. -$4,356.73 d. -$8,391.39 e. -$2,047.50 Question 4 Assume that Joel does not like Montauk Meetings's recent change in capital struc- ture and its effect on his annual cash flows. Which of the following are the actions that Joel must take in order to receive as close as possible to the same annual cash flows that he would have received under Montauk Meetings's original, leveraged capital structure? a. selling 1,918 shares of stock and lending $47,950.00 b. selling 1,830 shares of stock and lending $45,750.00 c. borrowing $27,050.00 and buying 1,082 shares of stock d. borrowing $45,750.00 and buying 1,830 shares of stock e. selling 1,170 shares of stock and lending $29,250.00 f. selling 1,346 shares of stock and lending $33,650.00 g. borrowing $29,250.00 and buying 1,170 shares of stock h. selling 1,082 shares of stock and lending $27,050.00 i. borrowing $47,950.00 and buying 1,918 shares of stock