3. Tenacious X-ray (TX) is an all-equity firm operating in a perfect capital market with 20 million shares outstanding at a current price of $5 per share. TX plans to borrow $30 million and using the funds to repurchase shares.

What is the initial value of the assets? $100M

What is the initial value of the equity? $100M

What is the value of the assets after borrowing $30 million? $130M

What is the value of the assets after repurchasing the shares? $100M

What is the value of the equity after repurchasing the shares? $70M

How many shares can the company repurchase? 6 million shares

How many shares will the company have outstanding after the repurchase? 14 million shares

What is the price per share of the remaining shares outstanding? $5/share

Can you please explain these answers without using excel