Stock Price after Recapitalization Lee Manufacturing's value of operations is equal to $900 million after a recapitalization (The firm had no debt before the recap.) Lee raised $300 million in new debt and used this to buy back stock. Lee had no short-term investments before or after the recap. After the recap, wd = 1/3. The firm had 26 million shares before the recap. What is P (the stock price after the recap)? Do not round intermediate calculationos. Round your answer to the nearest cent. $

$34.62

Explanation:

Lee's manufacturing value of operation is $900 million after recapitalization

The firm has no amount of debt Before this

They also had no short term investments before the recap

After the recap wd= 1/3

Lee's had 26 million before the recap

The first step is to calculate the value of equity after recap

= (1-1/3) × 900 million

= 0.6667 × 900 million

= 600 million

Therefore the stock price after the recap can be calculated as follows

= 600 million + (300 million - 0)/26 million

= 600 million + 300 million /26 million

= 900 million/26 million

= $34.62

Hence the stock price after the recap is $34.62

answer; ///i believe the correct answer is (c) laissez-faire;