Find value of the things after the recapitalization

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Big 4 Rents, an equipment rental company in Berkeley, CA, currently has debt with a market value of $110 Million. They have 5 million shares outstanding that are trading at a price of $30. They are preparing to carry out a recapitalization in which they will sell $50 Million of new shares and use the proceeds to pay down debt. In a Modigliani & Miller world, what will be the value of the following things after the recapitalization?

Reference no: EM132645081

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