Question
Shapland Accounting's value of operations is equal to $900 million after a recapitalization (the firm had no debt before the recap). Shapland raised $300 million
Shapland Accounting's value of operations is equal to $900 million after a recapitalization (the firm had no debt before the recap). Shapland raised $300 million in new debt and used this to buy back stock. Shapland had no short-term investments before or after the recap. After the recap, wd=1/3. The firm had 10 million shares before the recap. What is the stock price after the recap?
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Financial Management Theory And Practice
Authors: Prasanna Chandra
10th Edition
9353166527, 978-9353166526
