Bangalore Bread is now considering a leverage recapitalization of the company. Upon announcement, management expects the share price to rise 10 percent. If the comaony rises 200 million rupees in new debt to repurchase shreas, how many shares can the company repurchase? Assuming management will activly manage to the new capital structure, estimate its new market beta. If the interest rate on the company's debt rises to 100 basis points above the Indian risk-free rate, what will its new cost of capital equal? (Assume a debt beta of zero and that the beta of the tax shildes will equal the beta of the unlevered firm. How high would the company's interest rate have to rise in order for the cost of capital to be the same as in question 1?