explanation of this slide

Cost/Benefit from Capital Structure Choices Table 16.4 Payoff and Cost to Shareholders of Trans Am Corporation under the Proposed Structure and under the Current Structure with Homemade Leverage Imestor receives the same payoff whecher she (1) burs shares in a levered corporation or (2) buys shares in an unlevered firm and borrows on personal accounc. Her initial investment is the same in either case. Thus the firm neicher helps nor hurts her by adding debt to capial structure. Cost/Benefit from Capital Structure Choices Table 16.4 Payoff and Cost to Shareholders of Trans Am Corporation under the Proposed Structure and under the Current Structure with Homemade Leverage Imestor receives the same payoff whecher she (1) burs shares in a levered corporation or (2) buys shares in an unlevered firm and borrows on personal accounc. Her initial investment is the same in either case. Thus the firm neicher helps nor hurts her by adding debt to capial structure