Dye Trucking raised $255 million in new debt and used this to buy back stock. After the recap, Dye's stock price is $8.50. If Dye had 50 million shares of stock before the recap, how many shares does it have after the recap?
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Dye Trucking raised $255 million in new debt and used this to buy back stock. After the recap, Dye's stock price is $8.50. If Dye had 50 million shares of stock before the recap, how many shares does it have after the recap?
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- Dye Trucking raised $150 million in new debt and used this to buy backstock. After the recap, Dye’s stock price is $7.50. If Dye had 60 million sharesof stock before the recap, how many shares does it have after the recap?Bo's Home Manufacturing has 280,000 shares outstanding that sell for $43.87 per share. The company has announced that it will repurchase $48,000 of its stock. What will the share price be after the repurchase?Tucker’s National Distributing has a current market value of equity of $10,665. Currently, the firm has excess cash of $640, total assets of $22,400, net income of $3,210, and 500 shares of stock outstanding. Tucker’s is going to use all of its excess cash to repurchase sharesof stock. What will the stock price per share be after the stockrepurchase is completed?
- Tucker’s National Distributing has a current market value of equityof $10,665. Currently, the firm has excess cash of $640, total assetsof $22,400, net income of $3,210, and 500 shares of stock outstanding.Tucker’s is going to use all of its excess cash to repurchase sharesof stock. What will the stock price per share be after the stockrepurchase is completed?Lee Manufacturing's value of operations is equal to $900 million after a recapitalization. (The firm had no debt before the recap.) Lee raised $300 million in new debt and used this to buy back stock. Lee had no short-term investments before or after the recap. After the recap, wd = 1/3. The firm had 34 million shares before the recap. What is the stock price after the recap?The Dunn Corporation is planning to pay dividends of $540000. There are 270000 shares outstanding, and earnings per share are $4. The stock should sell for $48 after the ex-dividend date. If, instead of paying a dividend, the firm decides to repurchase stock,a. What should be the repurchase price? b. How many shares should be repurchased? c. What if the repurchase price is set below or above your suggested price in part a? d. If you own 100 shares, would you prefer that the company pay the dividend or repurchase stock? a. 3/10, net 45 b. 3/15 net 30 c. 3/15 net 60 d.2/10 net 45
- c) Tucker’s National Distributing has a current market value of equity of $10,665. Currently, the firm has excess cash of $640, total assets of $22,400, net income of $3,210, and 500 shares of stock outstanding. Tucker’s is going to use all of its excess cash to repurchase sharesof stock. What will the stock price per share be after the stockrepurchase is completed?McPherson Pharmaceutical has common stock that is trading for $75 per share. The company paid a dividend of $5.25 last year. This dividend is expected to increase at a rate of 3% per year. What is the cost of equity capital for McPherson? If McPherson issues new shares with a flotation cost of $2 per share, what is the company’s cost of new equity?(using excel formulas)Shares Remaining After Recapitalization Dye Trucking raised $255 million in new debt and used this to buy back stock. After the recap, Dye's stock price is $8.50. If Dye had 60 million shares of stock before the recap, how many shares does it have 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 shares
- The shares of a company trade today for $37. The company is fairly valued at this current price. There are 39 million shares outstanding prior to the repurchase. The company has announced that it intends to spend $265 million on an open market repurchase. Assume that the company is able to repurchase shares at a price of $39.00. Assume that the company is all-equity financed. What fraction of shares does the company repurchase? What is the share price after the repurchase?Zee Manufacturing’s value of operations is equal to $1,800 million after a recapitalization (the firm had $ 200 million debt before the recap). Zee raised additional $400 million in new debt and used this to buy back the stocks. Zee had no short-term investments before or after the recap. After the recap, wd = 0.35. The firm had 60 million shares before the recap. What is the stock price after the recap?Executive Chalk is financed solely by common stock and has outstanding 25 million shares with a market price of $10 a share. It now announces that it intends to issue $160 million of debt and to use the proceeds to buy back common stock. a. How is the market price of the stock affected by the announcement? b. How many shares can the company buy back with the $160 million of new debt that it issues? Note: Enter your answer in millions. c-1. What is the market value of the firm (equity plus debt) after the change in capital structure? Note: Enter your answer in millions. c-2. Did the market value of the firm change? d. What is the debt ratio after the change in structure? Note: Round your answer to 2 decimal places. e. Who (if anyone) gains or loses? a. Effect on market price b. Shares repurchased c-1. Market value c-2. Did the market value of the firm change? d. Debt ratio e. Who (if anyone) gains or loses? Stock price remains the same. 160 million 250 million $ No 1.78 No one gains or…