Drisk Limited has a debt/equity ratio of 3/2. It has 10,000,000 shares outstanding trading at $30 each.
Fantastic news! We've Found the answer you've been seeking!
Question:
sufficient number of common shares and will use the cash proceeds to pay off the debt. After the repurchase of debt, it will maintain the new capital structure indefinitely. Drisk's corporate tax rate is 40%
b. What is the Drisk's value after the announcement of the debt repurchase?
c. How many shares of stock will Drisk issue?
d. After the capital restructuring has taken place, what will be Drisk's
1. Total equity
2. Number of shares outstanding
3. Price per share
4. Cost of equity
5.rWACC
Related Book For
Posted Date: