Dye Trucking raised $95 million in new debt and used this to buy back stock. After...

Dye Trucking raised $95 million in new debt and used this to buy back stock. After the recap, Dye's stock price is $9.50. If Dye had 70 million shares of stock before the recap, how many shares does it have after the recap? Enter your answer in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answer to the nearest whole number.

? million shares

Expert Solution

Number of shares repurchased = debt raised / stock price = $95,000,000 / $9.50 = 10,000,000

Shares after the recap = 70,000,000 - 10,000,000 = 60,000,000

jeff jeffy answered 2 years ago

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