(154) Value of Equity after Recapitalization Nichols Corporations value of operations is equal to $500 million after...
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(15–4)
Value of Equity after Recapitalization Nichols Corporation’s value of operations is equal to $500 million after a recapitalization
(the firm had no debt before the recap). It raised $200 million in new debt and used this to buy back stock. Nichols had no short-term investments before or after the recap. After the recap, wd = 40%. What is S (the value of equity after the recap)?
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Related Book For 
Financial Management Theory And Practice
ISBN: 9781439078105
13th Edition
Authors: Eugene F. Brigham, Michael C. Ehrhardt
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