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    Recapitalization for Dye Trucking

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    Dye Trucking raised $150 million in new debt and used this to buy back stock. After the recap, Dye's stock price is $7.5. If Dye had 60 million shares of stock before the recap, how many shares does it have after the recap?

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    Solution Preview

    The repurchase would not change the value of the firm and so the ...

    Solution Summary

    The solution explains how to calculate the number of shares after the recapitalization briefly and clearly.