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3. Suppose that Pfizer moves to a 40 percent book leverage ratio ((long-term debt + other longterm liabilities)/total assets) by issuing debt and using the

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3. Suppose that Pfizer moves to a 40 percent book leverage ratio ((long-term debt + other longterm liabilities)/total assets) by issuing debt and using the proceeds to repurchase shares. Consider only corporate taxes and assume that debt will be held constant to perpetuity. Reconstruct its book AND market balance sheets to reflect the new capital structure. How much additional value is added if the assumptions in the table are correct

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