Suppose a company is financed with $60 million of equity and $40 million of debt. That is, the company obtained $60 million from shareholders and $40 million from debt holders to finance its operations. Its capital structure is, therefore, 60% (=$60million/ ($60 million+$40 million) ) equity and 40% debt.

1. If company issues $10 million new debt in order to repurchase some of its shares, what would be its new capital structure?