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Nichols Corporation value of operation is equal to $500 million after recapitalization (the firm had no debt before recap). It raised $200 million in new debt and used this to buy back stock. Nichols had no short-term investments before or after recap. after recape wd =40%. What is S (the value of the equity after the recap)?

Corporate Finance, Finance

  • Category:- Corporate Finance
  • Reference No.:- M9219408

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