You currently hold 100 shares of fletcher what will be your


Fletcher Corporation is debating whether to convert its all-equity capital structure to one that is 40% debt. Currently, there are 1963 shares outstanding selling at $74 per share. EBIT is expected to remain at $14003 per year forever. The interest rate on new debt is 7%, and there are no taxes.

You currently hold 100 shares of Fletcher. What will be your annual cash flow under the proposed capital structure? Assume that Fletcher has a 100% dividend payout ratio.

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Financial Management: You currently hold 100 shares of fletcher what will be your
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