Value of Equity after Recapitalization Nichols Corporation's value of operations is equal to $700 million after...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Value of Equity after Recapitalization Nichols Corporation's value of operations is equal to $700 million after a recapitalization (the firm had no debt before the recap). It raised $210 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 = 30%. 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 Check My Work (3 remaining) Value of Equity after Recapitalization Nichols Corporation's value of operations is equal to $700 million after a recapitalization (the firm had no debt before the recap). It raised $210 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 = 30%. 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 Check My Work (3 remaining)
Expert Answer:
Posted Date:
Students also viewed these finance questions
-
For the Somerset furniture Company described in Case Problem 10.1 in Chapter 10, determine the product lead time by developing a time line from the initiation of a purchase order to product delivery....
-
A disadvantage of the projectized organization has to do with the tendency of project professionals to fall behind in areas of technical expertise not used on the project. Name several ways that a...
-
What is the formula for the net interest margin? Explain why it is closely monitored by banks.
-
Explain the methodology for combining two or more statistical estimates from different audit tests. Calculate the combined confidence limits for two asset accounts whose separate confidence intervals...
-
Jones Wholesale Company has been one of the fastest growing wholesale firms in the United States for the last five years in terms of sales and profits. The firm has maintained a current ratio above...
-
5. Consider the inclined manometer below. Plot the change in differential pressure versus the change in differential length, &, of the mercury in the inclined section. SG=0.9 Water 100 mm 30 80 mm 50...
-
Create an amortization schedule for a $20,000 loan at 4% interest per year, with monthly payments over a 5-year period. How much of the third months payment will be used to reduce the principal...
-
Revived Routines: Consumers are settling into new schedules and navigating a return to reality. They are eager to get on with their lives despite the uncertainties ahead. Using your knowledge and...
-
2. Suppose a business takes out a $300,000, ten years loan at 8 percent. The business wants to make equal principal payments over the period. Prepare an amortization schedule for this loan.
-
A patient present with dehydration, hypotension and fever. Lab testing reveals hyponatremia, hyperkalemia and hypoglycemia. These imbalance are corrected, burt the patient returnes 6 weeks later with...
-
At the end of this month, Leslie will start saving $200 a month for retirement through his company's superannuation plan. His employer will contribute an additional $0.50 for every $1.00 that he...
-
What is the bond's Macaulay duration of a2.5 years, 8 percent semiannual coupon bond selling at par of $1,000?
-
Provide an example of a substantive law. Provide an example of a procedural law.
-
Illini Company, Inc. Balance Sheet as of 12/31/20X0 Assets Current Assets: Cash $1,500,000 Accounts receivable, net 18,000 Inventory 50,000 Total current assets 1,568,000 Equipment 90,000 Goodwill...
Study smarter with the SolutionInn App