Below is a company's market value$-$based balance sheet. The company is subject to a $30\%$ marginal corporate tax rate. All other $M$ be rolled over indefinitely. $(12$ points$)$

be rolled over indefinitely. $(12$ points$)$

Let's assume that the company just raised $$2000$ via debt financing and used the entire proceeds to repurchase equity.

$($b$)$ Work out the company's balance sheet after the transactions. Show your work below.

$\backslash$table$[[$Balance sheet in market values $($$$)],[$Long$-$term fixed assets,Long$-$term debt$],[$PV of interest tax shields,Equity$],[$Total assets,Total value$]]$

$($c$)$ Are shareholders better off or worse off as a result of the transactions, and by how much? Numerically explain.

$6$