1. Leveraged Recapitalization at Home Depot Below is an abbreviated balance sheet for Home Depot (numbers in $millions). They currently have 1,507 million shares outstanding at a price of $60 per share. Total Assets LIABILITIES AND STOCKHOLDERS' EQUITY Total debt Other Liabilities Total Liabilities Total Stockholders' Equity $ 40,518 10,788 11,832 22,620 17,898 Total Liabilities and Stockholders' Equity $ 40,518 Management is considering issuing an additional $7 billion in debt and using the proceeds to repurchase shares in the open market. Answer the questions below using the following assumptions: The new debt will be kept outstanding at a fixed level perpetually. Home Depot's effective corporate tax rate in recent years is 36% 1) Complete the book value balance sheet below, both before (currently) and after the whole transaction (including debt issuance and share repurchase) is completed. Before: Assets: D: Assets: Other Liab: E: After: D: Other Liab: E::