What is the market value value of the company prior to the


An all-equiry business has 175M shares outstanding selling for $20/share. Management believes interest rates are unreasonably low and decides to execute a leveraged recapitalization. It will raise $1B in debt and repurchase 50M shares.

What is the market value value of the company prior to the recap and what is the market value of equity?

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Finance Basics: What is the market value value of the company prior to the
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