8. Problem 15-09 (Shares Remaining after Recapitalization)8€eBookShares Remaining After RecapitalizationDye Trucking raised $150 million in new debt and used this to buy back stock. After the recap, Dye's stock price is $7.50. If Dye had 70 million shares ofstock before the recap, how many shares does it have after the recap? Enter your answer in millions. For example, an answer of $1 million should beentered as 1, not 1,000,000. Round your answer to the nearest whole number.million shares

A recap, is a restructuring strategy which involves altering a company's capital structure by…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Shares Remaining After Recapitalization Dye Trucking raised $255 million in new debt and used this to buy back stock. After the recap, Dye's stock price is $8.50. If Dye had 60 million shares of stock before the recap, how many shares does it have after the recap? Enter your answer in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answer to the nearest whole number. million shares
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Question: Dye Trucking raised $240 million in new debt and used this to buy back stock. After the recap, Dye's stock price is $8. If Dye had 50 million shares of stock before the recap, how many shares does it have after the recap?
The owners’ equity accounts for Vase Corporation are shown here: Common stock (€3 par value) Capital surplusRetained earningsTotal owners’ equity €900,000 1,200,000 2,600,000 4,700,000 Instructions: 1. If the company’s stock currently sells for €58 per share and a 15 percent stock dividend is declared, how many new shares will be distributed? Show how the equity accounts would change. 2. Assume that instead of a stock dividend, the company declares a three-for-one stock split. How the equity accounts will change? How many shares are outstanding now? What is the new par value per share?
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! Required information Assume you pay the reduced amount of $4,405 for a corporate stock that has a market value of $5000. The stock pays an annual dividend of 4.5% of its market value. Since this is primarily a dividend-paying stock, you estimate that you will sell the stock 10 years from now at the current $5000 market value. Identify the spreadsheet function that displays the present worth now (year 0) of the original purchase price, dividends, and proceeds when the stock is sold after 10 years, if i= 7.1% per year. The spreadsheet function is (Click to select) , and it displays $
Caspian Water needs to raise $59.00 million by issuing additional shares of stock. If the market estimates Caspian Water will pay a dividend of $2.12 next year (D1 2.12), which will grow at 3.99% forever and the cost of equity to be 12.82%then how many shares of stock must the firm sell? 1 ) None of the answers in this list is within 100 shares of the correct answer 2) 312,890 3) 2,457,406 4 ) 4,128,970 5 ) 915,939 6 ) 2.975,934
Toronto Corporation wants to raise $1,210,000 via a rights offering. The company currently has 220,000 shares of common stock outstanding that sells for $32 per share. The issue will allow current stockholders to purchase one additional share for 5 rights. a) What will be the ex-rights stock price, the value of a right, and the appropriate subscription price? b) If 2 rights are needed to purchase on additional share, how does the stockholders’ wealth change? c) Why do you think the company chose a rights issue rather than a general cash offer to raise new capital?
Beets Inc had 10m shares outstanding that were trading at $5. In 2020 it received a profit that was $4m higher than expected. It announced that it will use $1.25m to buy back shares. How many shares would be left in circulation after the repurchase program is complete? [enter your answer in M of shares, with 2 decimal places precision]

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