SECTION 15-7 A firm's value of operations is equal to $800 million after a recapitalization (the firm had no debt before the recap). It raised $200 million in new debt and used this to buy back stock. The firm had no short-term investments before or after the recap. After the recap, wd = 25%. The firm had 10 million shares before the recap. Its federal-plus-state tax rate is 25%. What is S(the value of equity after the recap)? What is Ppost (the stock price) after the recap? What is npost (the number of remaining shares) after the recap? V D wa nprior DULINE S= Ppost npost