Value of Equity after Recapitalization Nichols Corporation's value of operations is equal to $650 million after a recapitalization (the firm had no debt before the recap). It raised $260 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 = 40%. What is S (the value of equity 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 $
Value of Equity after Recapitalization Nichols Corporation's value of operations is equal to $650 million after a recapitalization (the firm had no debt before the recap). It raised $260 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 = 40%. What is S (the value of equity 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 $
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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![7. Problem 15-07 (Value of Equity after Recapitalization)
eBook
Value of Equity after Recapitalization
BA
Nichols Corporation's value of operations is equal to $650 million after a recapitalization (the firm had no debt before the recap). It raised $260 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, wa = 40%. What is S (the
value of equity 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
$](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc98508c7-e092-496c-a84e-ac5cab5dc5c6%2F71a55078-424b-47d6-a5c5-c1c0c4814720%2F5nfgyg8_processed.png&w=3840&q=75)
Transcribed Image Text:7. Problem 15-07 (Value of Equity after Recapitalization)
eBook
Value of Equity after Recapitalization
BA
Nichols Corporation's value of operations is equal to $650 million after a recapitalization (the firm had no debt before the recap). It raised $260 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, wa = 40%. What is S (the
value of equity 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
$
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