Question: Table 1: Scenario Analysis Raise Debt or Equity? Assuming r_U = 12% Assuming r_D does not change when the leverage changes Scenario 1: $1billion of

$Table 1: Scenario Analysis \"Raise Debt or Equity?\" Assuming r_U =$

Table 1: Scenario Analysis \"Raise Debt or Equity?\" Assuming r_U = 12% Assuming r_D does not change when the leverage changes Scenario 1: $1billion of debt Scenario 2: to repurchase $1bi11ion of stocks Current stocks to repurchase debt (1) Market Value of Net Debt (approximated by book value of net debt) (2) Market Value of @uitx (3) D/E ratio (rounded to 4 (4) E/(D+E) (5) D/(D+E) (6) r_D (7) r_E (8) Pre-tax WACC Note: All numbers in thousands

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