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unchUrl=https%253A%252F%252Flms.mheducation.com Facebook SD SDSU | Authenticati... G https://sdsu.instruct azeer nadia@yaho Dashboard Get Homework Hel... WebAdvisor Main M TOP Tute Ch 13 Homework Sees Help

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unchUrl=https%253A%252F%252Flms.mheducation.com Facebook SD SDSU | Authenticati... G https://sdsu.instruct azeer nadia@yaho Dashboard Get Homework Hel... WebAdvisor Main M TOP Tute Ch 13 Homework Sees Help S 4 166 points Skipped Lemansky Enterprises is considering a change from its current capital structure. The company curently has an all equity capital structure and is considering a capital structure with 35 percent debt. There are currently 6.000 shares outstanding at a price per share of $90 EBIT is expected to remain constant at $75,000 The interest rate on new debt is 12 percent and there are no taxes a. Rebecca owns $36,000 worth of stock in the company if the firm has a 100 percent payout, what is her cash flow? Note: Do not round intermediate calculations and round your answer to 2 decimal places, 32.16. b. What would her cash flow be under the new capital structure assuming that she keeps all of her shares Note: Do not round intermediate calculations and round your answer to 2 decimal places, 32.16 c. Suppose the company does convert to the new capital structure. Show how Rebecca can maintain her current cash flow Note: Do not round intermediate calculations and round your answer to the nearest whole number, 32. Book Post References b. Shareholder cash flow a. Shareholder cash flow c. Number of shares stockholder should sell

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