Jim Dandy, Inc. currently has no debt, but has a beta of 0.8, a cost of equity of 9%, and a tax rate of 40%. It also has 250,000 shares of stock outstanding valued at $40 per share. As a CFO, you are exploring borrowing $3 million and using the proceeds to repurchase stock. Assuming a Modigliani and Miller theoretical framework, what will be the firms debtequity ratio following the repurchase? Should Modigliani and Miller assumptions be accounted for? Please do not solve in excel and be sure to show work. Thank you.