Return, Beta, and Leverage

$$ Suppose AAP bought $$10$m of its equity back with $$10$m in debt causing the return on debt

to increase to $12\mathrm{.}4\%.$

$$ What does the market value balance sheet look like?

$$ How does this affect total firm value?

$$ How does this affect the riskiness of AAP$$s assets?

$$ How does this affect the cost of capital of AAP$$s assets?

$$ How does this affect the AAP$$s return on equity?