Question: can you plaese explain step by step the solution and hpw we are thinking to solve it Carlstens Metallica AB was a firm with 100

can you plaese explain step by step the solution
and hpw we are thinking to solve it can you plaese explain step by step the solution and hpw we

Carlstens Metallica AB was a firm with 100 million shares trading at SEK 18/share, debt outstanding of SEK 600 million and a cost of capital of 10%, prior to a recapitalization. It has just borrowed SEK 920 million and completed a buyback of 40 million shares at SEK 23/share. If the remaining shares trade at SEK 28 after the buyback, estimate the cost of capital after the buyback. (You can assume that the company is in stable growth, growing 2% a year in perpetuity) I Carlstens Metallica AB was a firm with 100 million shares trading at SEK 18/share, debt outstanding of SEK 600 million and a cost of capital of 10%, prior to a recapitalization. It has just borrowed SEK 920 million and completed a buyback of 40 million shares at SEK 23/share. If the remaining shares trade at SEK 28 after the buyback, estimate the cost of capital after the buyback. (You can assume that the company is in stable growth, growing 2% a year in perpetuity)

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