Question
Nichols Corporation's value of operations is equal to $600 million after a recapitalization (the firm had no debt before the recap). It raised $150 million
Nichols Corporation's value of operations is equal to $600 million after a recapitalization (the firm had no debt before the recap). It raised $150 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 = 25%. What is S (the value of equity after the recap)?
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International Finance
Authors: Keith Pilbeam
4th Edition
0230362893, 978-0230362895
