reduce JetBlue’s cost of capital
from the much higher cost of private equity. Additionally, the new equitywill lower the debt to equity ratio. With a lower debt to equity ratio, JetBlue will then have increasedaccess to the debt market with more favorable terms. The ability to access more debt can then be used toagain decrease the cost of capital by altering the capital structure of JetBlue to take advantage of the taxadvantages provided by debt financing. The tax shield of the debt financing will increase the enterprisevalue of the company.