Question: please answer completely and correctly all questions thanks 0.00 points Newkork, Inc, is an unlevered firm with expected annual earnings before taxes of $21.4 million
please answer completely and correctly all questions thanks

0.00 points Newkork, Inc, is an unlevered firm with expected annual earnings before taxes of $21.4 million in perpetuity The current required return on the firm's equity is 15 percent, and the firm dividends at the end of each year The compan is 15 percent, and the firm distributes all of its earnings as y has 1.34 million shares of common stock outstanding the firm's equity wi to a corporate tax rate of 40 percent. The firm is planning a recapitalization under which it issue $30.4 million of perpetual 9 4 percent debt and use the proceeds to buy back shares a-1. Calculate the value of the company before the recapitalization plan is announced (Enter your dollars, not millions of dollars, e.g.. 1,234,56I. Do not round intermediate calculations and round your answer to the nearest whole number,e.g. 32.) a 2. What is the price per share? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g. 32.16.) b-1. Use the APV method to calculate the company value after the recapitalization plan is announced Enter your answer in dollars, not millions of dollars, e.g.. 1,234,567. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Value after recap calculations and round your answer to 2 decimal places, e-9-32.1 b-2. What is the price per share after the recapitalization is announced? (Do not round intermediate per share $ c-1. How many shares will be repurchased? (Enter your answer in dollars, not millions of dollars,e.g 1,234,567. Do not round intermediate calculations and round your answer to the nearest w number, e.g, 32.) Shares repurchased c 2. What is the price per share after the recapitalization and repurchase? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g. 32.16) 'Price per share $ d. Use the flow to equity method to calculate the value of the company's equity after the recapitalization (Enter your answer in dollars, not millions of dollars, e.g. 1,234,567. Do not round intermediate calculations and round your answer to the nearest whole number, e.g. 32.) Value of the equity References eBook & Resources
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
