How does buy back equity with debt change the D/E ratio

CFA Level II Corporate Finance
#1

If you issue debt to buy back share, will that reduce equity by the debt amount?

#2

buy back equity -> reduces equity

issue debt -> increases debt

In terms of A = L + E

Originally say 100=A, L=80, E=20

Now A=100, L=90, E=10

D/E will definitely have changed from 4 to 9.

#3

That’s what I thought. But I found my error when I reply the thread … take a look at CFAI book Corp Finance P129 Q17.

Total asset in your case will increase by larger tax shield ! Equity will be more than 10.