Fcoj, inc., a prominent consumer products firm, is debating whether to convert its all-equity capital structure to one that is 20 percent debt. currently, there are 17,000 shares outstanding, and the price per share is $47. ebit is expected to remain at $39,100 per year forever. the interest rate on new debt is 6.5 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?
b. what will allison’s cash flow be under the proposed capital structure of the firm? assume she keeps all 150 of her shares.
c. assume that allison unlevers her shares and re-creates the original capital structure. what is her cash flow now?

engine assembler, survey reasearcher, auditor

1) the stages a new product goes through from beginning to end, i.e., the stages that a product passes through from introduction through growth, maturity, and decline. 2) the time from initial research and development to the time at which sales and support of the product to customers are withdrawn. 3) the period of time during which a product can be produced and marketed profitably.

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answer; /// multipotentialite means a person who have many different interests and creative pursuits in life; (one true calling);

polymath; means a person   of wide-ranging knowledge or learning;

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