Intermediate Financial Management
14th Edition
ISBN: 9780357516782
Author: Brigham, Eugene F., Daves, Phillip R.
Publisher: Cengage Learning
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Question
Chapter 16, Problem 9P
Summary Introduction
To determine: Number of shares does the firm have after the recap.
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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
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?
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?
Chapter 16 Solutions
Intermediate Financial Management
Ch. 16 - Prob. 1QCh. 16 - Prob. 2QCh. 16 - Prob. 3QCh. 16 - One type of leverage affects both EBIT and EPS....Ch. 16 - Prob. 5QCh. 16 - Prob. 6QCh. 16 - Prob. 7QCh. 16 - Prob. 8QCh. 16 - Prob. 9QCh. 16 - Prob. 1P
Ch. 16 - Premium for Financial Risk
Ethier Enterprise has...Ch. 16 - Value of Equity after Recapitalization Nichols...Ch. 16 - Prob. 9PCh. 16 - Prob. 10PCh. 16 - Capital Structure Analysis Pettit Printing Company...Ch. 16 - Prob. 16PCh. 16 - Prob. 1MCCh. 16 - Prob. 2MCCh. 16 - Prob. 3MCCh. 16 - Prob. 6MCCh. 16 - What does the empirical evidence say about capital...
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