Question: PLEASE ANSWER THE QUESTIONS IN EXCEL FORMAT A firm's value of operations is equal to $800 million after a recapitalization (the firm had no debt

PLEASE ANSWER THE QUESTIONS IN EXCEL FORMAT

PLEASE ANSWER THE QUESTIONS IN EXCEL FORMAT A firm's value of operations

A firm's value of operations is equal to $800 million after a recapitalization (the firm had no debt before the recap). It raised $200 million in new debt and used this to buy back stock. The firm had no short-term investments before or after the recap. After the recap, w = 25%. The firm had 10 million shares before the recap. Its federal-plus-state tax rate is 25%. What is S (the value of equity after the recap)? What is PPost (the stock price) after the recap? What is post (the number of remaining shares) after the recap? Vop $800 D $200 Wa Ilprior S= PPost = 11post 25% DOO

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