At one of their regular executive meeting, the Startco's CEO was reviewing the Company's financials and ask the CEO (which is you) the following question. "I noticed our capital structure Debt/Equity ratio is 0.33. What may happen if we double our borrowing and use the extra cash from the loan to buy back some our shares? I see doing is as a simple way to improve profitability."

Briefly explain whether you agree with the CEO statement and why (why not).