Question
Nichols Corporation's value of operations is equal to $750 million after a recapitalization (the firm had no debt before the recap). It raised $350 million
Nichols Corporation's value of operations is equal to $750 million after a recapitalization (the firm had no debt before the recap). It raised $350 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= 45%. What is S in millions(the value of equity after the recap)?
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Essentials of Investments
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
10th edition
77835425, 978-0077835422
