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Ivenika [448]
3 years ago
5

Dye Trucking raised $240 million in new debt and used this to buy back stock. After the recap, Dye's stock price is $7. If Dye h

ad 55 million shares of stock before the recap, how many shares does it have after the recap
Business
1 answer:
zalisa [80]3 years ago
3 0

Answer: 20,714,286 shares

Explanation:

Find out the number of shares that was repurchased:

= Amount raised / stock price

= 240,000,000 / 7

= 34,285,714 shares

Number of shares after recap:

= Number of shares before recap - Shares repurchased

= 55,000,000 - 34,285,714

= 20,714,286 shares

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