Bangalore Bread is now considering a leveraged recapitalization of the company. Upon announcement, management expects the share price to rise by 10 percent. If the company raises 200 million rupees in new debt to repurchase shares, how many shares can the company repurchase? Assuming management will actively manage to the new capital structure, estimate its new beta. If the interest rate on the companys 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 shields will equal the beta of the unlevered firm.) How high would the companys interest rate have to rise in order for the cost of capital to be the same as in Question 1?