Consider the Market Value Balance Sheet for DeJean Inc. for 2022, which is shown below and included in the attached Excel File.

FINC 423

Advanced Corporate Finance

Fall 2023

2022 Market Value Balance Sheet & Recapitalization

Current Assets

Fixed Assets

Tax Shield

Total Assets

2022

2,043,176

18,522,654

1,441,950

22,007,780

Current Liabities

Long Term Debt

2,587,080

4,806,500

Non Debt Long Term Liabilities

Total Liabilities

Equity

Total Liabilities and Equity

7,393,580

14,614,200

22,007,780

Recap-14cc47c3-d65e-4e3c-92c4-27ea18b4d929.xls J

Click on the button above to open the dataset in another tab. Then download the data to a file. Be sure to use the Close button on the right-hand corner of the black bar on the top of the tab to return to the quiz.

The firm has 276,000 shares outstanding that are currently trading for $52.95, and its tax rate is 30%.

If the managers issue $1,500,000 in new debt and use the proceeds to pay a special dividend, what will be the share price after the recapitalization (based on the Modigiani and Miller 1963 framework)?

41.57

O 49.15

O 45.98

O 48.77

O 50.45

Consider the Market Value Balance Sheet for DeJean Inc, for 2022, which is shown below and induded in the attached Excel File tab. Then download the data to a file. Be sure to use the Close button on the ilget-hand comer of the buck bur on Click on the button above to open the d vading for $52.95, and its tax rate is 30k. The firm has 276.000 shares outstanding that are currently trading for $5295, a 5 s and Miller 1963 framework?? 4157 4945 45.98 48.77 Consider the Market Value Balance Sheet for DeJean Inc, for 2022, which is shown below and induded in the attached Excel File tab. Then download the data to a file. Be sure to use the Close button on the ilget-hand comer of the buck bur on Click on the button above to open the d vading for $52.95, and its tax rate is 30k. The firm has 276.000 shares outstanding that are currently trading for $5295, a 5 s and Miller 1963 framework?? 4157 4945 45.98 48.77