Question: recapitalization) increase or decrease if only $4 million was borrowed to buy back 100,000 shares of stock? Explain your answer. 4. Ignore taxes and financial

recapitalization) increase or decrease if only $4 million was borrowed to

recapitalization) increase or decrease if only $4 million was borrowed to buy back 100,000 shares of stock? Explain your answer. 4. Ignore taxes and financial distress for this question. Suppose that your firm has a debt- equity ratio of 0.75, a cost of debt of 8.5%, and an unlevered cost of equity of 15%

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