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  • Case 6

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    Huỳnh Lữ Thị Như
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    case 6.xlsx

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    11 views2 pages

    Case 6

    Uploaded by

    Huỳnh Lữ Thị Như

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    Pre Recapitulation Equity Value of the unlevered firm

    + The PV of Debt Tax Shield Per Share


    = Post Recapitulation Equity Value of Levered Firm

    Unlevered Recapitalized Deviden Recapitalized Buyback


    Old share price 56.37 56.37 56.37
    Tax shield 1200 1200
    Adjusted share price 56.37 61.53 61.53
    Share 232.44 232.44 232.44
    Repurchase price 61.53
    Share repurchase 48.7567040468064
    Adjusted share 183.683295953194
    Market value of equity 13102.6428 11302.0332 10354.2273928815
    Debt 3000 3000

    8
    56.37 (exhibit 5)
    5.16 =40%*3$/232,44
    61.53

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