How does the proposed recapitalization create value for Blaine Kitchenware? Explain why Blaine should consider a recap and how it could add value

Consider this is two ways -

First, how would the proposal effect Blaine's profit performance ratios?

Second, in terms of the capital structure models, the interest-tax shield (i.e., M&M) can be valued at approximately what? Hint: is the effective increase in debt limited to the $50M issued? Also, does the static trade-off model apply here?