Zombie, Inc., a prominent consumer products firm, is debating whether or not to convert its all$-$equity capital structure to one that is $40$ percent debt. Currently, there are $1,000$ shares outstanding and the price per share is $$70.$ EBIT is expected to remain at $$7,000$ per year forever. The interest rate on new debt is $7$ percent, and there are no taxes.a$.$ Ms$.$ Spears, a shareholder of the firm, owns $100$ shares of stock. What is her cash flow under the current capital structure, assuming the firm has a dividend payout rate of $100$ percent?b$.$ What will Ms$.$ Spears's cash flow be under the proposed capital structure of the firm? Assume that she keeps all $100$ of her shares.c$.$ Suppose Zombie does convert, but Ms$.$ Spears prefers the current all$-$equity capital structure. Show how she could unlever her shares of stock to recreate the original capital structure.d$.$ Using your answer to part $($c$),$ explain why Zombie's choice of capital structure is irrelevant.