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15-4 Value of Equity and Recapitalization Nichols corporation's value of operations is equal to $500 million after a recapiization (the firm had no debt before
15-4 Value of Equity and Recapitalization
Nichols corporation's value of operations is equal to $500 million after a recapiization (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, w4 = 40% What is S (the value of equity after the recap)?---Answer is $300 million---show all work and formulas to support answer)
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