TSLA inc. is unlevered firm that currently generates EBIT of $50m a year in perpetuity and has 10m shares outstanding. the unlevered cost of capital for TSLA is 6% and the current corporate tax rate is 40%. You are considering a leverage recapitalization where you buy back equity by issuing new debt? if you do the recapitalization you will issue $200m in debt at a 5% interest rate. the debt will be in perpetuity. a. what is the value of TSLA inc. if it were to remain all equity financed? b. what would be the value of the firm if it raised 200m in debt? c. if they want to use the debt issue to repurchase $200m in stock how many shares of stock will they have to repurchase?