Assume that Kyle was impressed by your discussion in Question 3. He now understands that interest is tax deductable and the firm could potentially benet from issuing more debt. Kyle decides to issue $5 billion of debt (on permanent basis} and use the proceeds to repurchase shares. 4. What is the present value of interest tax shield (ITS) of the new debt? 5. At the announcement of the repurchase, what is the new market value of the equity and the share price (assume no arbitraging}? 5. After the repurchase, how many shares are outstanding? How has this deal affected the total value of the firm