Solution suggestion You may first workout a "scenarios table" for various share repurchase plans (in $000,000's) Debt-to-capital (D/E) 0% 20% 40% 60% 80% Interest rate 4.5% 4.5% 4.5% 4.5% Interest exp. Total BV debt (D) Cash used in repo Total $ repo PV (tax shield) Stock price paid #Shares repo - 28.6 1,273 400 400 400 400 Total MV of equity (E) 10,984 10,192 $38.65