Find value of equity post repurchase

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A company has been 100% equity owned but recently made changes to its capital structure. Here is the data: -Issues $8,000,000 in new debt to buy back stock -the firm had no short term investments before or after the recapitalization -The firm had 1,000,000 in shares outstanding before the recapitalizaion -the capital structure now has 20% debt -the company operations are valued at $40 million after recapitalization

1. Stock price before the repurchase?
2. Number of shares repurchased?
3. Value of equity post repurchase?

 

Reference no: EM13271338

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