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Pagemaster Enterprises is considering a change from its currentcapital structure. The company currently has an all-equity capitalstructure and is considering a capital structure with 35 percentdebt. There are currently 6,500 shares outstanding at a price pershare of $50. EBIT is expected to remain constant at $89,856. Theinterest rate on new debt is 6 percent and there are no taxes.a.Rebecca owns $10,000 worth of stock in the company. If the firmhas a 100 percent payout, what is her cash flow? (Do notround intermediate calculations and round your answer to 2 decimalplaces, 32.16.)b.What would her cash flow be under the new capital structureassuming that she keeps all of her shares? (Do not roundintermediate calculations and round your answer to 2 decimalplaces, 32.16.)c.Suppose the company does convert to the new capital structure.Show how Rebecca can maintain her current cash flow. (Donot round intermediate calculations and round your answer to 2decimal places, 32.16.)