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dimaraw [331]
3 years ago
13

Nichols Corporation’s value of operations is equal to $500 million after a recapitalization (the firm had no debt before the rec

ap). It raised $200 million in new debt and used this to buy back stock. Nichols had no short-term investments before or after the recap. After the recap, wd 5 40%. What is S (the value of equity after the recap)?
Business
1 answer:
kompoz [17]3 years ago
5 0

Answer:

$3,000,000

Explanation:

Base on the scenario been described in the question, for we to calculate the value of equity after recap we have to use the following method.

W4= 40/100= 0.4

S = ($2,000,000/0.4) - $2,000,00)

S = $5,000,000 -$2,000,00

S = $3,000,000

As the value of equity after recap , which is our answer .

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= $60,000

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3 years ago
Which company is most easily able to outsource its operations and have its good or service produced in another country
svet-max [94.6K]

Answer:

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Explanation:

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Blanche Inc. has 9% annual coupon bonds that are callable and have 18 years left until maturity. The bonds have a par value of $
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