Question
ABC Inc. has no debt, a WACC of 10% and a FCF of $15 million that is assumed to be constant. The firm decides to
ABC Inc. has no debt, a WACC of 10% and a FCF of $15 million that is assumed to be constant. The firm decides to recapitalize with 30% debt in the capital structure which will result in a lower WACC of 9%. If it currently has 10 mil. shares outstanding, how many shares will be outstanding after the recapitalization?
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International financial management
Authors: Jeff Madura
9th Edition
978-0324593495, 324568207, 324568193, 032459349X, 9780324568202, 9780324568196, 978-0324593471
