The firm had no debt before the recap

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Reference no: EM131450360

Nichols Corporation's value of operations is equal to $600 million after a recapitalization (the firm had no debt before the recap). It raised $300 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 = 50%. What is S (the value of equity after the recap)? Enter your answer in millions of dollars.

Reference no: EM131450360

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