Subject category:
Finance, Accounting and Control
Published by:
Darden Business Publishing
Version: 03.1992
Length: 10 pages
Data source: Published sources
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Abstract
The focus of this case is an announcement by Colt Industries of its intent to recapitalize the firm. The management proposes to issue $1.5 billion in new debt and pay an $85 cash dividend. The stock price before the announcement was $67. The case requires the student to estimate what the stock price will be after the recapitalization.
About
Abstract
The focus of this case is an announcement by Colt Industries of its intent to recapitalize the firm. The management proposes to issue $1.5 billion in new debt and pay an $85 cash dividend. The stock price before the announcement was $67. The case requires the student to estimate what the stock price will be after the recapitalization.