Question

Shares Remaining After Recapitaliration Dye Trucking ruised 555 milian in new dehe and used thes to buy bock stock. After the recap, Dye's stock price is 55.50, If Dye had 50 millian shares at zatock bedire the moap, how many shares does th have after the recap? Enter your answer in millions. For exanple. an anvaer of I mition should br entered as 1, not 1, ove,000; Anond your answer to the nearest wbole number. (a) milinen shares

Answer 1

After recapitalization, Dye Trucking will have 40 million shares remaining. The company had 50 million shares and bought back 10 million shares using the $555 million raised from new debt.

Step-by-step explanation:

To calculate the shares remaining after recapitalization for Dye Trucking, we should first determine the amount of money spent on the buyback of stock. Dye Trucking raised $555 million in new debt for this purpose. Given that the stock price after the recapitalization is $55.50, we can determine the number of shares bought back by dividing the total amount raised by the stock price:

Number of shares bought back = $555 million / $55.50 per share = 10 million shares

Since Dye Trucking had 50 million shares outstanding before the buyback, we subtract the number of shares bought back to find the number of shares remaining:

Shares remaining after recapitalization = 50 million shares - 10 million shares = 40 million shares

Therefore, Dye Trucking will have 40 million shares remaining after the recapitalization. To follow the instructions for presenting the answer, we round this to the nearest whole number, which remains 40 million shares.