Help, Model share repurchase with debt

Hello. Can someone help me understand this? Or how would you model this?

Assuming cash is 0. If a company repurchases its shares by borrowing debt, the future cash flow should not change, then the enterprise value would not change. Shareholder value/Equity value = enterprise value - debt, since the debt increases, then the Equity value would decrease.

There are fewer shareholders, so the total shareholder value decreases. When we consider total shareholder wealth, do we calculate total shareholder value + the debt used to repurchase ( consider the company has bought the shares from the selling shareholder?)

Thanks. Appreciate any input.

Best,

Wayne

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