Value of equity after recapitalization

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Value of Equity after Recapitalization

Nichols Corporation's value of operations is equal to $730 million after a recapitalization (the ?rm had no debt before the recap). It raised $245 million in new debt and used this to buy back stock. Nichols had no short-term investments before or after the recap. After the recapI wd = 35%. What is S [the value of equityr after the recap)? Enter your answer in millions. For example, an answer of $1 million should be entered as 1., not 1,000,000. Round your answer to the nearest whole number.

Reference no: EM133062438

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