The stock price after the recap

Assignment Help Financial Management

Reference no: EM131130777

Lee Manufacturing's value of operations is equal to $540.00 million after a recapitalization (the firm had no debt before the recap). Lee raised $238.00 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 = 25.75%. The firm had 28.00 million shares before the recap. What is P (the stock price after the recap)? Round your answer to the nearest cent.

Reference no: EM131130777

Questions Cloud

What is the expected after-tax cash flow : What is the expected after-tax cash flow from selling a piece of equipment if Litchfield Design purchases the equipment today for 70,000 dollars, the tax rate is 20 percent, the equipment is sold in 3 years for 9,000 dollars, and MACRS depreciation i..

Cash flow effect from the change in net working capital : For project A, the cash flow effect from the change in net working capital is expected to be -500 dollars at time 2 and the level of net working capital is expected to be 1,300 dollars at time 2. What is the level of current liabilities for project A..

What are some of the social and individual consequences : What are some of the social and individual consequences of the types of attributions we make as to the causes of other's behavior?

Desire a major league baseball team to relocate there : Some community leaders in St. Paul, MN desire a major league baseball team to relocate there. They want to build a domed stadium to attract such a team.

The stock price after the recap : Lee Manufacturing's value of operations is equal to $540.00 million after a recapitalization (the firm had no debt before the recap). Lee raised $238.00 million in new debt and used this to buy back stock. Lee had no short-term investments before or ..

Contrast of profit and shareholder wealth maximization : When those Sets proved wrong, the $1.24 billon losses resulted in the 1995 demise of the centuries-old Barings Bank More than any other single episode in world financial history Lesson's misdeed provide the importance of character in the financial in..

Choose two strategies from the advocacy wheel : Review Wilson, Advocacy and Empowerment for Battered Women in eReserves. - Choose two strategies from the Advocacy Wheel

What difference would focusing on asset prices make : How would your policy have affected interest rates and real output during the period in question? What would be the benefit of your policies?

Which would require the purchase of piece of equipment : Middlefield Motors is evaluating project A, which would require the purchase of a piece of equipment for 382,000 dollars. During year 1, project A is expected to have relevant revenue of 193,000 dollars, relevant costs of 66,000 dollars, and some dep..

User Account

All Pages