Question

ekook Shares Remaining After Recapitalization Dye Trucking raised $110 million in new debt and used this to buy back stock. After the recap, Dye's stock price is $8.5. If Dye had 75 million shares of stock before the recap, how many shares does it have after the recap? Enter your answers in millions. For example, an answer of $10,550,000 should be entered as 10.55. Do not round intermediate calculations. Round your answer to two decimal places. million shares

Answer 1

number of shares purchased = debt raised / stock price

=>$110 million /8.5

=>12.9411764705

=>12,941,176.47.shares.

number of shares after repurchase = existing share - purchased shares.

=>75,000,000-12,941,176.47

=>62,058,823.53. shares.

=>62.06 million shares.