Netflux Inc. has the following initial Market Value Balance Sheet (MVBS): Netflux Inc (Smm) Assets Cash 2,000 Enterprise Value-6,000 Market Value Assets 8,000 Liabilities Debt-4,000 Equity 4,000 Market Value Liabilities-8,000 Equity 4,000 Number of shares 20 mm shares Price $200/share Netflux Inc. (NI) has the intia MVBS above. Assume that NI uses all of its cash to repurchase 10 mm shares (a) What will be the MVBS of NI after its stock repurchase, assuming NI's enterprise value remains unchanged'? Since NI's stock repurchase, its business has suffered an its EV has declined so that its stock price is $70/share at this time. In reponse to its declining equity value and increasing leverage, NI has decided to reduce its financial leverage by selling 20 mm newly-issued shares at 570/share and using all of the proceeds to retire a portion of its debt. (b) After NI sells the new stock and retires Debt, what will be the resulting MVBS of NI? Assume now that Netflux didn't repurchase stock at S200/share, but instead used $1,400 of its original cash to retire a position of its Debt. Further assue that Netflux did not sell any newly-issued shares. (c) Under these assumptions, and using the correct implied EV from part b), what would be the MVBS of NI? In an analyst conference call, NI's CFO was asked ifNI's earlier 10 mm share stock repurchase at $200/share had been bad for shareholders given that NI had to sell stock recently at $70/share NetFlux's CFO responded by saying "With the benefit ofhindsight, it might appear to some that NI overpaid when we earlier repurchased those 10 mm shares. But that stock repurchase cut in half the number of shares outstanding, which benefitted shareholders by almost doubling EPS Thus, on balance, I don't think NI's stock price would be any higher today had NI not repurchased those 10 mm shares (d) Do you agree or disagree with NI's CFO? Please explain breifly why you agree or disagree