Can you help me with this 2 questions please?

1. Rexton Oil is an all-equity firm with 100 million shares outstanding. Rexton has US$150 million in cash and expects future free cash flows of US$65 million per year. The management plans to use the cash to expand operations, which will permanently increase future free cash flows by 12%. The cost of capital of Rexton's investments is 10%, and both the company and shareholders are exempt from taxes.

I have doubts about: How would a decision to use the cash for a share repurchase rather than for the expansion change Rexton's share price?

2.How can I comment the following sentence

"During the current pandemic companies should reduce leverage to add value to its shareholders".