User Account

All Pages

Value of equity after the recap

Assignment Help Finance Basics
Reference no: EM131936457

Nichols Corporation's value of operations is equal to $750 million after a recapitalization (the firm had no debt before the recap). It raised $350 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 = 45%. What is S in millions (the value of equity after the recap)?

Reference no: EM131936457

Questions Cloud

What is the break-even quantity : Shapland Inc. has fixed operating costs of $800,000 and variable costs of $36 per unit. If it sells the product for $60 per unit.
Explain how you as the social worker would address : A 15-year-old high school student was referred to the school-based social worker who provides mental health treatment at a local school to help deal.
Term loan at an annual interest rate : What is the minimum amortization rate you need to negotiate with your banker if he proposes a 5-year term loan at an annual interest rate of 10%?
What would the quarterly payment have to be : Assume you will be borrowing $250,000 for a home at 6% nominal annual interest, compounded quarterly. You also assume that your income will increase by 2%.
Value of equity after the recap : Nichols had no short-term investments before or after the recap. After the recap, wd = 45%. What is S in millions (the value of equity after the recap)?
Prepare the volume and loss statement : Assume 80,000 FFS visits, and 60,000 capitated members with an expected utiliiation per member per month of .25. Assume reimbursement is $70 per FFS visit.
What are the major differences between models iaas and paas : Outline the major benefits and issues with each approach. What are the major differences between the models IaaS, PaaS and SaaS?
How much is the additional premium that ethier : Ethier is financed with 40% debt and has a levered beta of 2.2 If the risk-free rate is 3.0% and the market risk premium is 7%.
Determine the risk of the project : Assume that the capital cost and the present value of the cash flows generated by a project are both uncertain. If the capital cost is normally distributed.

Reviews

Write a Review

Finance Basics Questions & Answers

  How does the payment of dividends on preferred stock affect

how does the payment of dividends on preferred stock affect the eps

  Amount of free trade credit

What is the amount of free trade credit that Langley obtains from Consolidated Services? (Assume 360 days per year throughout this problem.)

  In this module you have been introduced to the capital

in this module you have been introduced to the capital asset pricing model capm. the required return can be determined

  The effects of the two reporting techniques on the financial

The effects of the two reporting techniques on the financial statements differ substantially. From the perspective of the lessee, prepare a chart that lists the line items reported on the (a) Income statement, (b) Balance sheet (c) Statement of cash ..

  Develop a questionnaire and a cover letter

Working in a group of four or five, develop a two-page questionnaire and a cover letter that you could mail to a sample of these students.

  Information relative to urban outfitters

The company requires a payback period no greater than five years. Listed below is selected information relative to Urban Outfitters and The Gap (GPS).

  Discount and rate of return are one and the same thing

Hint: Use the perpetuity formula. Remember the rate of discount and rate of return are one and the same thing.

  Percent-of-sales forecasting method

A firm has targeted a 40% growth in sales this year. Last year's cash as a percent of sales was 15%, accounts receivable 30%, and inventory 35%. What percentage growth in current liabilities is required to support the growth in sales under the p..

  Call option on gold with a strike price

If you pay a premium of $27.5 today per option and the interest rate per year is 3.4%, how much is your payoff if the spot price of gold in one year is $1,650?

  Discuss the barriers that will exist to successful implement

This week, discuss the barriers that will exist to successful implementation of this change. Along with discussing how the change itself will be perceived by the employees, talk about risks to the company, internal and external factors which will cre..

  Recommend working capital strategies capital structures

prepare a two-page paper in which you present a comprehensive financial analysis of the selected organization .in your

  Describing yield curve predictor

Discuss ways in which an investor can take advantage of the flat or inverted yield curve. Provide three current, specific real-world examples in your discussion.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd