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Use the following information for questions26-28. Ross Westerfield Corporation is an all equity corporation with 20,000 shares outstanding at a market price of $70 and

Use the following information for questions26-28. Ross Westerfield Corporation is an all equity corporation with 20,000 shares outstanding at a market price of $70 and they are expecting perpetual EBIT of $160,000. RW has a 100% dividend payout ratio. They are considering borrowing money at 10% to raise their debt to equity ratio to 2. Coach Buzzcut owns 300 shares of RW. There are no taxes 26. Show Buzzcuts cash flows under the current capital structure a. $2,000 b. $2,200 c. $2,400 d. $2,600 e. $2,800

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