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The current required return on the fim's equity is 16 percent, and the firm distributes all of its earnings as dividends at the end of
The current required return on the fim's equity is 16 percent, and the firm distributes all of its earnings as dividends at the end of each year. The company has 142 mil on shares af common stock outstanding and is subject to a corporate tax rate of 40 percent. The firm is planning a recapitalization urcer which it will issue S31.2 millicn of perpetual 10.2 percent debt and use the proceeds to buy beck shares. a-1. Calculate the value of the company before the recapitalization plan is anncunced. (Enter your answer in dollars, not millions of dollars, e.g, 1,234,567. Do not round intermediate calculations and round your answer to the nearest whole number, e.g, 32.) Current value a-2. What is the price per share(Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Price per share b-1. Use the APV method to calculate the company value after the recapitalizalion plan is arnounoed. (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Do not round intermediate calculations and round your answer to the nearest whole number, e.g, 32.) Value after recapitalization b-2. What is the price per share ater the recapitalization is announcec? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g, 32.16) Price per share C-1. How many shares will be repurchased? (Enter your answer in dollars, not millions of dollars, e.g. 1.234,567. Do not round intermediate calculations and round your answer to the nearest whole number, e.g-,32.) shares resurced c-2. What is the price per share after the recapital zation and repurchase? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16) Prike per share d. Use the tow to equity method to calculate the value ot the company's equity atter the recap talization (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Do not round intermediate calculations and round your answer to the nearest woember, e.g., 32.) Value of the equity The current required return on the fim's equity is 16 percent, and the firm distributes all of its earnings as dividends at the end of each year. The company has 142 mil on shares af common stock outstanding and is subject to a corporate tax rate of 40 percent. The firm is planning a recapitalization urcer which it will issue S31.2 millicn of perpetual 10.2 percent debt and use the proceeds to buy beck shares. a-1. Calculate the value of the company before the recapitalization plan is anncunced. (Enter your answer in dollars, not millions of dollars, e.g, 1,234,567. Do not round intermediate calculations and round your answer to the nearest whole number, e.g, 32.) Current value a-2. What is the price per share(Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Price per share b-1. Use the APV method to calculate the company value after the recapitalizalion plan is arnounoed. (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Do not round intermediate calculations and round your answer to the nearest whole number, e.g, 32.) Value after recapitalization b-2. What is the price per share ater the recapitalization is announcec? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g, 32.16) Price per share C-1. How many shares will be repurchased? (Enter your answer in dollars, not millions of dollars, e.g. 1.234,567. Do not round intermediate calculations and round your answer to the nearest whole number, e.g-,32.) shares resurced c-2. What is the price per share after the recapital zation and repurchase? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16) Prike per share d. Use the tow to equity method to calculate the value ot the company's equity atter the recap talization (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Do not round intermediate calculations and round your answer to the nearest woember, e.g., 32.) Value of the equity
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