Students should estimate the selling price of the shares Colt on the day after the dramatic financial restructuring, valuation of debt tax shield. Colt stock was selling for $ 66.75 per share, and Colt has just announced a plan to shareholders to receive $ 85 and one new share in the recapitalized Colt for each share of existing stock held. Cash payments will be financed through the issuance of $ 1.5 billion of new debt.
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by Robert M. Conroy Source: Darden School of Business 9 pages. Publication Date: March 29, 1991. Prod. #: UV0073-PDF-ENG
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