Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN: 9781337395083
Author: Eugene F. Brigham, Phillip R. Daves
Publisher: Cengage Learning
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Question
Chapter 16, Problem 6P
Summary Introduction
To determine: Number of shares does the firm have after the recap.
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Students have asked these similar questions
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?
How many shares ?
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
Chapter 16 Solutions
Intermediate Financial Management (MindTap Course List)
Ch. 16 - Prob. 1QCh. 16 - Prob. 2QCh. 16 - Prob. 3QCh. 16 - One type of leverage affects both EBIT and EPS....Ch. 16 - Prob. 5QCh. 16 - Prob. 6QCh. 16 - Prob. 7QCh. 16 - Prob. 8QCh. 16 - Prob. 9QCh. 16 - Prob. 1P
Ch. 16 - Unlevered Beta
Counts Accounting’s beta is 1.15...Ch. 16 - Premium for Financial Risk
Ethier Enterprise has...Ch. 16 - Value of Equity after Recapitalization Nichols...Ch. 16 - Stock Price after Recapitalization Lee...Ch. 16 - Prob. 6PCh. 16 - Prob. 7PCh. 16 - Capital Structure Analysis Pettit Printing Company...Ch. 16 - Optimal Capital Structure with Hamada
Beckman...Ch. 16 - WACC and Optimal Capital Structure F. Pierce...Ch. 16 - Prob. 12PCh. 16 - Prob. 1MCCh. 16 - Prob. 2MCCh. 16 - Prob. 3MCCh. 16 - Prob. 4MCCh. 16 - Prob. 5MCCh. 16 - Prob. 6MCCh. 16 - What does the empirical evidence say about capital...Ch. 16 - Suppose there is a large probability that L will...Ch. 16 - What is the value of Ls stock for volatilities...
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- show working with answerarrow_forwardprovide answerarrow_forwardThe shares of a company trade today for $37. The company is fairly valued at this current price. There are 39 million shares outstanding prior to the repurchase. The company has announced that it intends to spend $265 million on an open market repurchase. Assume that the company is able to repurchase shares at a price of $39.00. Assume that the company is all-equity financed. What fraction of shares does the company repurchase? What is the share price after the repurchase?arrow_forward
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