Tenacious X-ray (TX) is an all-equity firm operating in a perfect capital market with 20 million shares outstanding at a current price of $5 per share. TX plans to borrow $30 million and using the funds to repurchase shares.

Explain a leveraged recapitalization

1) What is the initial value of the assets?

2)What is the initial value of the equity?

3)What is the value of the assets after borrowing $30 million?

4)What is the value of the assets after repurchasing the shares?

5)What is the value of the equity after repurchasing the shares?

6) How many shares can the company repurchase?

7)How many shares will the company have outstanding after the repurchase?

8)What is the price per share of the remaining shares outstanding?

please show work and do not use excel.