The firm had no debt before the recap

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Nichols Corporation's value of operations is equal to $400 million after a recapitalization (the firm had no debt before the recap). It raised $150 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 = 37.5%. What is S (the value of equity after the recap)? Enter your answer in millions of dollars.

Reference no: EM132047751

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