To replicate the proposed capital structure, the shareholder should sell 30 percent of their shares, or 60 shares, and lend the proceeds at 6 percent. The shareholder will have an interest cash flow of:

Interest cash flow = 60($53)(.06)

Interest cash flow =x1

The shareholder will receive dividend payments on the remaining 140 shares, so the dividends received will be:

Dividends received = $8.64(140 shares)

Dividends received =X2

The total cash flow for the shareholder under these assumptions will be:

Total cash flow = X1+X2

Total cash flow = X3

Please solve for X1, X2, X3.

So, shareholders can create their own leverage or unlever the stock to create the payoff they desire, regardless of the capital structure the firm actually chooses.

Does this make the capital structure relevant?

this question is a complete question !