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Business, 26.11.2019 20:31 hgg44137

Fcoj, inc., a prominent consumer products firm, is debating whether to convert its all-equity capital structure to one that is 30 percent debt. currently, there are 7,000 shares outstanding, and the price per share is $44. ebit is expected to remain at $30,100 per year forever. the interest rate on new debt is 9 percent, and there are no taxes. a. allison, a shareholder of the firm, owns 150 shares of stock. what is her cash flow under the current capital structure, assuming the firm has a dividend payout rate of 100 percent?

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