Stock price after recapitalization

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Stock Price After Recapitalization

Lee Manufacturing's value of operations is equal to $900 million after a recapitalization (the firm had no debt before the recap). Lee raised $300 million in new debt and used this to buy back stock. Lee had no short-term investments before or after the recap. After the recap, wd = 1/3. The firm had 20 million shares before the recap. What is P (the stock price after the recap)? Round your answer to the nearest cent.

Reference no: EM131179683

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